Update for 20th June 2011

    Nifty Future Breaks Previous Swing Low !

Nifty future has broken the previous swing low at the time of writing this post on the back of news about the possibility of  amendment of India Mauritius tax treaty.  Mauritius has been the source of at least 30 % of FDI in India and some these have been suspected to be India centric black money. Nifty is at the risk of deep correction if the very minor support of 5175 - 5225 does not hold.

   Nifty Futures - Daily Chart    

S&P CNX Nifty Index - Weekly Chart

Update for 17th June 2011

   Nifty Futures Supported by the 5400 Strike ?

The interest hike by the RBI was more or less on the expected lines and was already discounted by the market. Hence the absence of any severe reaction to the news. However, as envisaged in the previous post, temporary spikes after a lower open happened post the news event. As the event is over, market may go back to it's own low volume listless trading mode, which makes all kinds of analysis much more difficult.  As of now, it seems that the Nifty future is supported by the huge open interest of Put options at the 5400 strike. Though the overall PCR of June series declined on Thursday, it is still above the unitary value and is still away from the very low values associated with very bearish scenarios.  

   Nifty Futures - Intra-day Chart  

  Nifty Futures  - Daily Chart