I do have a understanding that the stock prices move up when there are more buyers (Participation Phase), and the stock prices go down when there are more sellers (Distribution Phase). Does this theory hold true for Index Prices as well? If not, why do we care to look at the volumes and price pattern characteristics of indices like NIFTY? It is evident that constituent stocks move the index, so it makes more sense to apply technical analysis on Stocks rather than Index! Please correct me if I am wrong on this.
Let me know if this query is not clear.