Indian equity markets consolidated during the week. Our weekly chart analysis indicates that the Nifty formed a Hammer candle after a solid positive candle in the previous week. The index also created a higher low, while it managed to recover from the oversold zone. Going forward, 11,180 is a stiff resistance for the Nifty. Only a break above the same could lead to a fresh upmove. On the other hand, 10,800 is a crucial support area.
Bank Nifty, too, formed a Hammer candle on the weekly chart. It faces a stiff hurdle at its 200-DMA of 28,500 level. Only a break above the same could lead to a meaningful recovery. On the downside, 27,500 is an important support level.
The Nifty Energy index rose smartly during the week, thanks to the sharp upmove in Reliance Industries. The index re-entered the rising channel pattern indicating that the current upswing is likely to get extended further.