NIFTY Index Chart Analysis

DOLLAR CREATES A PUSH AND PULL EFFECT YET AGAIN

The depreciation of the rupee to an all-time low and other concerns like probability of yen carry trade unwinding and a sharp sell-off in the banking stocks gripped the equity markets. Nifty resumed its downtrend with an impulse move on Monday. Before this sharp slide, it gave a weaker signal on Friday, with a high-volume decline – distribution day. After dull trading in the preceding week, Nifty witnessed a surprising move last week, mainly because of short covering. It formed a long-legged, small-body candle. The index failed to close above the 10-week average, even after a 0.80 per cent net weekly gain.