Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL has a marketing and licensing agreement with Standard & Poor's.

The S&P CNX Nifty covers 21 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. The S&P CNX Nifty stocks represent about 60% of the total market capitalization of the National Stock Exchange (NSE).

The index is a free float market capitalization weighted index. From inception, the index used full market capitalization as weight assigned to different constituents. From June 26, 2009, the index is computed based on free float methodology. As of November 2010, top four scrips in the index (Reliance Industries, Infosys Technologies, ICICI Bank and Larsen & Toubro) account for about one third of the weight in the index whereas the top eight scrips account for about half the weightage in the index.

The base period for the S&P CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of NSE's Capital Market Segment.

Some of the main criteria’s set up for constituting this index are as follows:

• Market Capitalization- Each company must have a market capitalization equal to or exceeding Rs. 5 billion for the preceding six months.
• Public Float- Each company must have at least 12% of it outstanding shares available for public trading.
• Weighting-The index is computed using the market capitalization weighted method.
• Liquidity-For the purpose of inclusion in the NSE, liquidity is measured by impact cost. Each company must have traded at an average impact cost of 75% or less for the preceding six months for 90% of the trades. Impact cost measures the difference between the ideal selling price of a security and the actual price. The more liquid a security, the greater the chance that its shares trade at prices close to the ideal price. Highly liquid securities have very low impact cost.

In addition, a company which enters the market with an IPO can be reviewed for inclusion in the index if it meets the above criteria for three months. Companies that substantially violate one or more of the criteria for index inclusion.  Companies involved in merger, acquisition, or significant restructuring such that they no longer meet the inclusion criteria.

From the next page onwards we are giving you the detailed analysis of the Nifty Index both on fundamental and technical basis. Through technical analysis we are giving you the entire description of the candlestick patterns along with the relevant support and resistance levels which the Nifty has formed during the each corresponding year. The description has been duly supported by the charts to make our view point more clearly in the minds of the readers. On the other hand we have supported our analysis fundamentally also in which we have done the research to determine the reasons behind the nifty movement along with the crises which were deemed to have impacted the flow of movement in each relevant year. We have aimed to provide a conclusive and wholesome analysis of the nifty by taking into account all the possible reasons which might have affected the performance of the index to our readers. Historical views on the INDEX would enable the readers particularly the active traders and investors to take well informed and profitable trading decisions on the basis of its prior trends and movements.