NIFTY Index Chart Analysis

NIFTY REFLECTS SIGNS OF EXHAUSTION

The fall was sharp and impulsive two weeks ago and Nifty has undergone a counter-trend consolidation for the past two weeks. For the last six trading sessions, the index traded around the 61.8 per cent retracement level and was unsuccessful in closing above it. In fact, Nifty is struggling to surpass this important resistance to reverse the trend on the upside. The level of 19,485 has become a strong resistance level as it was tested several times. Only a close above this crucial level will give more strength to the pullback rally. It has to close above the prior swing high of 19,884 to reverse the trend.