Nifty Futures in Downtrend ?
Nifty futures broke the minor support of 5480 on Friday. The contract traveled to the next lower (old) reference level of 5450 and then recovered to close around the support area. As the international markets seem to be entering in to an intermediate term downtrend, Nifty also may also lose the recently seen minor resilience. As a first step, it may revisit the lower boundary of the old trading channel. ( Please see the channel in the weekly chart of Nifty index below.) The next support areas or reference areas are 5325-5350 and 5175-5225. A break of the lower support of old trading channel may also force the markets losing the long term support leading to a deep correction.
Nifty Futures - Intra-day Chart
Nifty Futures - Daily Chart
