NIFTY Index Chart Analysis

MOMENTUM GIVES THE MARKETS A MISS

After a string of eight consecutive decline days and nine bearish bars, the Nifty has turned up, as expected. The index has bounced back and retraced 61.8 per cent of the previous downswing, which is a typical pullback level in a downtrend. The index has stayed within a 200 points’ range, oscillating around the 200 DMA and closing just below the 200 EMA. The recent bounce was due to short covering and the RSI coming out of a squeeze area on an hourly chart. For the bulls to regain their strength, the bounce needs to close above the February 22 gap area around the 17,800 level.