The analysis of stock market indices to predict the state of the markets is an important part of technical analysis. Mr. Narendra Modi coming to power as the Prime Minister of India in June 2014 led to the hopes of a long-term bull market.

As it can be seen from the chart, soon after the new Prime Minister was elected, NIFTY witnessed a steady upmove for 8 consecutive months (July ’14- Feb ’15).

The sharp correction in February 2016 (NIFTY close price: 6987), combined with the constant downtrend in the past 1 year (March ‘15- Feb ‘16) negated market hopes of the start of a long-term bull market completely.

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