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A sharp V-shape reversal rally has brought bulls back into action and helped the benchmark to close above 12,000-mark.

Nifty50 has almost run 450 points in three days after the budget-day fall and has invalidated its short-term bearish structure.

Bank Nifty has also witnessed smart recovery from its recent low and closed well above 31,000 level.

HDFC Bank and ICICI Bank were the major contributors among the private sector banks and SBI was the front runner among the state-run banks.

Benchmark index Nifty, on February 5, recovered almost 100 points from its intraday low and closed above its smaller degree horizontal trendline.

Nifty50, on the daily chart, has witnessed its downward sloping trendline breakout which was connected by joining the highs of January 20 and January 30 on the daily timeframe.

Despite the bearish pattern setup in terms of the monthly candlestick, the overall structure didn’t seem to change much as Nifty continues to trade in higher high higher low formation on the monthly timeframe.

When we shift our attention towards the weekly chart, it can be observed that Nifty is closely following its upward rising trendline which is connected with a rising channel pattern.