Markets Take the ‘Adjustment’ Route

In a truncated trading week, Nifty 50 index, the NSE benchmark, ended in the red across all sessions, closing down by over 2.5 per cent for the week. Currently, the prices are hovering around the critical 200-day moving average (200 DMA). The price broke above the 200 DMA on April 23 and has remained above it till now. This support level has since been tested three times, including the present period. Notably, even during the June 4 election dip, the index touched the 200 DMA and subsequently rallied.