Nifty managed to hold above the 11,500 mark for the week. There was clear selling pressure around 11,600-11,650 which acted as very stiff resistance for the Nifty. Our weekly chart analysis indicates that Nifty has formed a solid bearish candle indicating that weakness is likely. Going forward, on the downside, the recent lows of 11,450 could act as a strong support area for the Nifty.
Bank Nifty, on the other hand, found support around its 50-DMA which was placed at 30,600. Going forward, only a break above the 30,900 mark would lead to a fresh breakout lifting the Bank Nifty higher towards the 31,200-31,300 zone. On the downside, 30,400 is likely to act as an important support area in the near term.
Nifty Pharma showed signs of recovery and staged a smart comeback. The index has formed a solid bullish engulfing pattern on the weekly chart indicating that the current momentum is likely to get extended further.