NIFTY Index Chart Analysis

ALL SIGHTS ON THE BUDGET NOW

The equity indices suffered significant losses last week. Nifty declined in all the five trading sessions and registered a 4.77 per cent fall. This fall is sharper than the first week of October’s fall and posted one of the sharpest declines in two years. With this fall, Nifty is back to below 200 EMA and 200 DMAs. It almost erased the previous four weeks’ gains. As suspected, the counter-trend rally ended at a 50 per cent retracement level. Friday’s massive volume decline is a caution for the bulls. The index may bounce for a day or two but may not sustain.