Is the Market Ready for a Rebound? Financial Analysis for the Week Ended Mar 7, 2025

The Indian markets look ripe for a rebound, even if a temporary one, going by the price action of last week. Given below are weekly charts of Nifty, Bank Nifty and CNXIT, along with a brief rationale for the optimism.

Nifty - Bullish Engulfing candle on the weekly chart that tested the prior congestion of 13 weeks from middle of February till the end of May last year.

Fig 1 - Weekly chart of Nifty showing Bullish Engulfing pattern

Bank Nifty - Double Bottom formation on the weekly chart. The pattern has formed in the middle of the congestion from last year which has acted as support.

Fig 2 - Weekly chart of Bank Nifty showing Double Bottom

CNX IT - Bullish Harami formed on the weekly chart after a big red candle the previous week. The candle has formed right at support making it a strong pattern.

Fig 3 - Weekly chart of CNX IT showing Bullish Harami

The broader market as reflected in the CNX Midcap and CNX Smallcap, has also formed bullish patterns, with a very strong bullish engulfing pattern on the latter. The weekly chart of Reliance industries, the market heavyweight, shows a remarkable reversal by forming a bullish engulfing pattern after a significant sell failure. Please see below.

Fig 4 - Weekly chart of Reliance showing a sharp reversal after a sell failure

Meanwhile, despite all the noise surrounding Trump era tariffs and what it means for the world, the Dollar Index has quietly tumbled last week in a major move that has strong bullish implications for equities round the world. See below.

Fig 5 - Weekly chart of DXY showing a sharp breakdown from a H&S pattern.

As they say, the charts have all the information and they speak their own language. The charts seem to have spoken a bullish language last week. So it seems, at least in the short term!

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