Nifty at the 5350 - 5400 Support Area !
Nifty futures have reached the earlier indicated support area of 5350 to 5400. The trailing Price Earnings Ratio ( PER ) has also reached it's one and half year lows. The index has support from the lower boundary of the old trading channel ( see the weekly chart in the previous post ) below the present levels. Another support is from the previous swing low area at 5175 to 5225. If the index could remain inside the trading channel we may see a bounce from these areas. However, a break of the old trading channel may lead to a much deeper correction. Therefore, it remains to be seen whether the Nifty index could remain inside the trading channel if slowing growth and profits continues.
Nifty Futures - Intra-day Chart
Nifty Futures - Daily Chart
