Nifty consolidates for 4th week, IT stocks to outperform

Markets continued to remain stuck in a tight trading band for the fourth consecutive week, which is a healthy development after a strong rally in the recent past. Going forward, only a breach below the 11550 mark will lead to fresh sell-off in the markets. On the upside, a break above the 11860 resistance zone would lead to a fresh upswing lifting the Nifty towards the 12000 mark in the coming week.

Bank Nifty, on the other hand, did give a sign of a short term breakdown; however, the index staged smart come back once again closing above the support of 29770 levels. On the upside, 30750 levels would act as crucial resistance for the index.

Nifty IT index has broken out from a classic Cup and Handle pattern, which indicates that IT stocks could see decent up-move in the coming weeks.

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