NIFTY Index Chart Analysis

MID-CAPS AND SMALL-CAPS STEAL THE SHOW

The Nifty has formed a bearish engulfing candle on a monthly chart. The index snapped its five-month rally by declining 500 points in August. Interestingly, it also ended the five-week losing streak last week. Historically, the Nifty has very rarely registered more than five consecutive negative closings. It closed at the 10-week average. Last week, it traded in a 234.9 points range and finally closed with 169.5 points’ gains. The Nifty has mostly traded in the zone of 19,250- 19,500 for the past 10 days. It formed a base after a decline of 786 points from its lifetime high. This 10-day flat base is very crucial for future directions.