NIFTY Index Chart Analysis

RISK MANAGEMENT IS THE NEED OF THE HOUR

In this latest update, Nifty has continued to gain for the sixth straight week. After testing the previous high and the sloping trend line drawn from March 2020, the index has bounced to new highs. As suspected in July, the 88-week consolidation in the range of 15,200-19,200 was the Stage 1 base. Prior to that, it rallied by 147.69 per cent or 11,093 points in just 82 weeks. By closing above the previous high of 20,222, the index has registered a 21-week first base in a transition to Stage 2. With this breakout, the level of 18,600-18,887 has become a new base for the market.