Investors need to skip trading for 2 sessions

Just before the event risk, the equities traded nervous last week. NSE Nifty lost by 426.40 points or 1.86 per cent. BSE Sensex declined by 1.92 per cent. The Midcap-100 and Smallcap-100 indices are also down by 1.37 per cent and 1.10 per cent, respectively. The PSU Bank and Bank Nifty gained by 0.37 per cent and 0.03 per cent, respectively. All other sectoral indices closed with negative bias. Nifty IT is the top loser with 4.25 per cent, followed by the Energy index with 3.31 per cent. The Advance-Decline ratio was negative throughout the week. The volatility index, India VIX, is up by 13.32 per cent to 24.60. The FIIs sold Rs42,214.28 crore, and the DIIs bought Rs55.733.04 crore worth of equities last month.

The benchmark index, Nifty, ended a six-month positive closing streak. It closed below the open on a month chart and formed a long-legged Doji candle. For the last five months, the index was traded in 1,973 points or 9.34 per cent range. It formed two indecisive Doji candles and three small body candles. It repeated the Doji candle after January 2024, with high volumes. Even on the weekly chart, the index recorded a massive volume with the addition of two distribution days. Currently, the Nifty is holding three distribution days. The Nifty has formed a dark cloud cover candle, which is bearish.

(The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)