On October 28, Nifty engulfed its previous session's candle, erasing all gains of October 27.

Nifty, on a daily timeframe, is trading within a flag formation which is bounded in the range between 11,650 and 12,025.

The weekly chart also indicates a sideways trend as prices have been consolidating within 400 points for the last couple of weeks with no specific direction.

In the last three trading sessions, the index has been continuously finding support near its 21-day exponential moving average on the daily interval which is acting as a sheet anchor for the Indian bourses.

India VIX has jumped 5 percent and is in a rectangle pattern on the daily chart. It is on the verge of a breakout above 24 levels which will spike volatility in the coming trading sessions.