NIFTY Index Chart Analysis

NIFTY INDICATES HIGHER PROBABILITY OF COUNTER-TREND CONSOLIDATION

The Nifty has finally ended its eight days of a winning streak and entered a phase of counter-trend consolidation. After forming a new all-time high last Friday with intense profit booking, the Nifty has formed a big bearish bar. It tested Monday’s close and formed a shooting star candle or an inverted hammer on the weekly chart. This candle formation opened negative implications after a rally of 877 points in just eight days. In fact, the index has given up 50 per cent of the weekly gains. This kind of price pattern, at an all-time high, indicates a potential pause in the trend, and if the profit booking is more intense, it could also lead to a reversal.