Update for 21st June 2011

     Nifty Future Hangs on the Precipice !

Nifty broke through the 5340 - 5350 support and fell vertically to the next minor support of 5175- 5225 levels yesterday. Nifty has effectively broken out of the one and half year old trading channel in yesterday's trading. ( Please see the weekly chart below. )  Now the question is whether the index is poised for a deep correction or not. Normally, whenever a support or resistance is broken, market has a tendency to retest the just broken support or resistance. Now, Nifty is in the process of testing the broken support at 5350. Therefore,  Nifty futures may spend some time between 5175 and 5350 before deciding the next directional movement.   

  Nifty Futures - Intraday Chart   

   Nifty Futures - Daily Chart    

S&P CNX Nifty Index - Weekly Chart

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