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Last week, benchmark indices and all sectoral indices ended up forming either bullish engulfing or piercing line candlestick pattern on their weekly Chart.

Nifty formed a bullish piercing line while Bank Nifty formed a bullish engulfing candlestick pattern. Both of these candlestick patterns are having bullish reversal implications and should not be ruled out even after their recent spike.

On January 20, 2020, Nifty registered an all-time high at 12,430 and ended the same session with a bearish engulfing pattern on the daily charts.

Bank Nifty also formed the same bearish formation on that day. Now, on the week ended February 7, 2020, both benchmark indices formed bullish reversal patterns of piercing and engulfing on the weekly charts.

So, as far as the sustainability of the trend is concerned, the bullish candlestick pattern - which has developed on the weekly chart recently - should be given higher importance than the earlier bearish candlestick pattern witnessed on the daily chart.

From the bottom of 11,614, registered on February 3, 2020, Nifty has risen 546 points to 12,160 and that too within the span of 4 sessions.

A 38.2 percent retracement of this swing gives the support at 11,950 odd levels. There could be the chances of well-deserved consolidation or running a correction in the coming days.