NIFTY Index Chart Analysis

AMIDST A RALLY, DOUBTS PERSIST

The bulls remained in control over the market and did not allow the Nifty to close below its previous day’s low until the last week. Meanwhile, Nifty continued to rally more than 1,000 points for nine straight sessions. The Reserve Bank of India (RBI) announced a neutral to favourable monetary policy that helped the markets to continue the rally in a series of truncated weeks. The advance-decline ratio was positive for the last two weeks as the broader market indices also participated in the rally. As had been forecasted in our earlier editorial, the right shoulder formation is 90 per cent done.