NIFTY Index Chart Analysis

Volatility Rules The Roost

The NSE benchmark Nifty 50 is still directionless though it made a futile effort to break the budget day range. On the monthly chart, Nifty is forming a doji candle and on the weekly chart it is forming a bearish engulfing candle. As mentioned earlier, the monthly bearish engulfing candles do not have a good history. Most of the tops were formed with bearish engulfing. After getting a confirmation for bearish engulfing last month, currently it has formed a lower low and lower high candle. After an unsuccessful effort last week, it failed to close above the 20-week average.