NIFTY Index Chart Analysis

Market Favours Bulls, But With An Element Of Doubt

The NSE benchmark index Nifty 50, though it hit a fresh all-time high, is struggling to cross the 61.8 per cent extension level of the prior uptrend. In June 2023, the breakout of the 86-week Stage 1 consolidation was registered and the same was retested in October 2023. After this retest, the index decisively entered Stage 2. For the last six weeks, it has failed to cross decisively above the level of 22,039. During the retesting of a breakout, it consolidated for 11 weeks before the breakout. Typically, the Stage 2 bases are 6-8 weeks in length. Last week, the Nifty closed at 22,040, and at the beginning of the current week, it opened above it and closed at the highest level.