NIFTY Index Chart Analysis

Bulls Lose Grip As Momentum Declines

In the previous column we discussed the mean reversion and probable volatile and impulsive moves. This has become real in the last nine trading sessions. The Nifty is back to below 20 DMA levels and broke the 50 DMA last week. Nifty broke other key supports last week. It closed below the previous flat base breakout level and formed a long-legged body candle on a weekly chart and closed below last week’s low. The Bollinger bands began to contract last week. Even though the benchmark index closed on a flat note on a week-onweek basis, the price structure was damaged a lot.