he Nifty sustained above the 20 DMA for the third successive day, and the Bollinger bands were flattened.

Our suspicion about the unabated, seven-week vertical rally was finally proved right with the expected pause becoming a reality.

In this latest update, Nifty has continued to gain for the sixth straight week.

The equity markets were seen consolidating for the last six days before the event risk of five state elections.

The fall was sharp and impulsive two weeks ago and Nifty has undergone a counter-trend consolidation for the past two weeks.

Last week, Nifty registered one of its worst declines. It spiralled down by 3.56 per cent in the previous two weeks, closed below the August 31 low and formed a major low.

As forecasted in the last column, the market has largely consolidated in the zone.

With a high probability, the corrective move will continue with higher volatile moves. We also mentioned several times about the impact of the low VIX regime.