Nifty charts indicate fresh bullish signals

NSE Nifty ended on a muted note after trading in 198 points range. Finally, it ended with just a 34.75 points gain. BSE Sensex also closed flat with a 0.07 per cent gain. Midcap-100 and Smallcap-100 indices outperformed by 1.62 per cent and 3.10 per cent. Nifty Realty and Media were the top gainers with 3.87 per cent and 3.15 per cent, respectively. On the flip side, Nifty Energy is down by 1.87 per cent, and Bank Nifty declined by 0.18 per cent. The Advance-Decline ratio was mostly positive last week. During the last month, FIIs bought Rs27,856.07 crore worth of equities, and the DIIs sold Rs3,306.35 crore. In the first two of June, FIIs sold Rs729.95 crore, and the DIIs bought Rs1,070.78 crore worth of equities.

The Nifty traded in the narrow range after opening with a gap-up opening. It failed to sustain the opening gains of the week and closed below the opening. It took support at 8EMA in the last two days and formed an inside bar on Friday. We can consider the last five days of price action as it is consolidation in nature. It neither broke the supports nor went below the previous week’s close. The Nifty rose for the second consecutive week after April's first week. The previous highest closing is 18,812.50pts, and the weekly highest closing is at 18,696.10pts.

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