NIFTY Index Chart Analysis

AN UPTREND UNDER PRESSURE

The domestic equity markets were very volatile during the last two weeks and traded in an extended range. After 18 weeks, the Nifty closed below the previous week’s low. It also closed at a three-week low. The decline with a higher volume in the last two weeks indicates clear distribution. The Nifty is holding four distribution days currently. It closed below the 20 DMA decisively. As expected, the mean reversion is now completed. But the million-dollar question is about whether the Nifty will end its counter-trend and resume its uptrend? The Nifty has declined below its July 4 low and formed an intermediate low last week.