Each Candle Represents One Week of NIFTY Activity
(NIFTY Weekly Candlestick Technical Analysis)
NIFTY had an interesting time, with election results in 4 states favoring the BJP and the AAP, and Congress in trouble. The market jumped immediately on the news, and reached an all time record high. It did start falling again and lost the gains it had registered.
While it reached the record high, the volumes aren't very reassuring. The week's high turned downwards without reaching the line of resistance, as is visible on the chart. At this point, the stock market is on a see-saw with emotions changing on a daily basis. It is a good time for short term trading gains, not a very good time for long term investing as the markets are not showing any long term trend; and they won't until the national election happens and the new government stabilizes.
Not considering any of the above and simply looking at the chart, the red marubozu with good trading volumes is showing that people are selling more than buying at this NIFTY level. The candlestick has rested on the level of support from the Opening Level of the previous week. This level is important and if it breaks, then we can see some more fall during this week. If the level doesnt break, then there might be a smaller movement in the index this coming week.
(NIFTY Weekly Candlestick Technical Analysis)
