NIFTY Index Chart Analysis

NIFTY FACES RESISTANCE AT THE 20-WEEK AVERAGE

The equity benchmark index cleared an important resistance last week and registered breakouts. The Nifty reclaimed the 50 DMA and confirmed the trend reversal. It retraced 50 per cent of the prior fall. Importantly, the index has registered breakout of an inverted head and shoulders pattern. It rallied 1,504.60 points from the bottom of November 21. After an 11.47 per cent decline from the all-time high, this 50 per cent retracement with a higher high indicates the trend of reversal.