NIFTY Index Chart Analysis

A TIME FOR CONSOLIDATION

In our earlier columns, we forecasted that the overstretched market may witness a sharper decline. As expected, Nifty declined by 6 per cent in just one week and broke the 10-week average support. This fall is after meeting the 100 per cent extension level of 26,276 of the March 2020 – October 2021 swing. After the six days of violent fall, the index has been consolidating for the past five days. It is quite normal to witness counter-trend consolidation after an impulse fall. Several factors have contributed to the recent market decline.