Update for 25th May 2011

   The Slow Drift Continues !

It seems that there is no buying interest as such in the market due to the current economic situation of slowing growth, rising costs and interest rates and above all, the new worries on the Euro sovereign debt front. Market is slowly drifting due to the lack of buying interest than by any heavy selling. May be, lower prices are required to elicit the buyers' interest. As such the downtrend may continue with occasional technical bounces.

Nifty Futures - Intra-day Chart      

    Nifty Futures  - Daily Chart  

Update for 24th May 2011

   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