NIFTY Index Chart Analysis
Consolidation And Caution To Rule The Market
Our suspicion about the unabated, seven-week vertical rally was finally proved right with the expected pause becoming a reality. The Nifty ended last week with a miniscule 0.5 per cent loss but on the back of high volatility. The Nifty has formed a hanging man-like candle, which is an indication of exhaustion. The index is still 7.53 per cent above the 20-week average, and the 50-week average is 2,472 points away. The distance between the mean average and the index has increased, and there is a possibility of mean reversion. A reasonable correction or a counter-trend consolidation is desirable.