NIFTY Index Chart Analysis

NIFTY CLOSES HIGH, YET NOT OUT OF THE VOLATILE ZONE

The previous week’s marginal breakout was confirmed with a decisive breakout during last week. It formed a strong bullish candle above the prior swing highs. The Nifty closed at a weekly high with the highest volume in the last two months. As the volume validates this breakout, it is better to avoid any bearish view. Currently, it is 3.78 per cent above the 10-weekly average (17,611) and 7.61 per cent above the 40-weekly average (17,009). The Nifty rallied 1,602 points or 9.57 per cent from the September 30 low. Also, after breaking out of a bullish flag pattern on October 24, the Nifty extended and achieved more than 50 per cent of the pattern target.