Nifty formed a solid bullish candle stick on the weekly chart as Nifty shut above the psychological 11,000 levels. However, our daily chart analysis indicates the index formed a hanging man candle stick on Thursday followed by another small Doji pattern on Friday.
These are early indications that consolidation may set in near term. Only a break above the hanging man patterns high of 11,090 and February 2019 swing high at 11,118 level could lead to a decent rally in the coming week. On the other hand, the Bank Nifty is on a clear upswing and has shown immense strength compared to the Nifty.
The index has already broken out from a Cup and Handle pattern on the weekly chart. In addition, the index has also broken past the 27,785 January 9 swing highs and also closed above the same.