NIFTY Index Chart Analysis

NIFTY ERASES BEARISH BIAS

With huge three-day price swings during the last week, equities rebounded and closed almost at the previous week’s high. As the geopolitical tensions eased, all the sectoral indices closed higher. Despite the technical pullback and Nifty closing at the high of the prior week, it is important to note that the positive closing doesn’t necessarily reflect a strong bullish bias. On Monday, the index traded higher with the help of heavyweight banks such as ICICI Bank, HDFC Bank, State Bank of India and Axis Bank, and closed at its highest level after April 10. On the weekly chart, last week the index formed a long upper shadow and a small body candle, which typically indicates market indecisiveness.