NIFTY Index Chart Analysis

RALLY RAISES HOPES BUT REMAIN CAUTIOUS

Nifty, the benchmark index, moved in line with our expectations in the last fortnight. It has broken the 11-day base with a huge positive gap at the beginning of the week and has now retraced 38.2 per cent of the prior trend. Moreover, it has filled the opening downside gap of May 6.That said, the price action of May 31 has warned the bulls once again amid sharp sell-off in the last leg of the trading session. On Tuesday, the index formed a Doji candle which shows not only indecisiveness but exhaustion as well. After back-to-back gap-up openings, the Nifty formed a Doji on a negative opening. It also formed an inside bar.