Nifty repeating Doji candle

With huge price swings for three days, the equities rebounded and closed almost at the previous week’s high. As the geopolitical tensions eased, all the sectoral indices closed higher. The benchmark index Nifty gained 272.95 points or 1.23 per cent. BSE Sensex gained by 0.83 per cent. The broader market indices have outperformed the benchmarks, as Smallcap-100 and Midcap-100 indices gained by 4.37 per cent and 3.96 per cent.

The PSU Bank index was the top gainer with 6.4 per cent, followed by the Realty index with 4.6 per cent.

The advance-decline ratio is positive during the week. The FIIs sold Rs36,933.21 crore during this month. In this calendar year, they sold massively by Rs85,559.33 crore. The volatility index, India VIX, is down by 18.82 per cent to 10.92. On Wednesday, it tested 9.85, the lowest in recent history.

Despite the technical pullback and the Nifty closing at the prior week’s high, it’s important to note that the positive closing doesn’t necessarily reflect a strong bullish bias. The index has formed a long upper shadow and a small body candle, which typically indicates market indecisiveness.

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