NIFTY Index Chart Analysis

NIFTY TAKES A SHORT LEAP UPWARDS

Nifty broke out of a sloping channel with a sharp bounce of over 1,088.40 points or 4.68 per cent on Friday and Monday. It closed above the 200 EMA and 200 DMA. Last week, the index took support from the 50-week average, formed a hammer candle, and indicated a probable reversal. The index has taken support four times since June 2022. As the Maharashtra election outcome was favourable to the BJP-led Mahayuti alliance , the index opened the fresh week with a huge positive gap of 346 points. If the index closes above the prior swing high of 24,538, it will form a higher high and signal a trend reversal.