Nifty has formed a perfect Doji candle on a weekly chart. After last week’s 573-point decline, this indecisive candle’s low has become crucial support.

The depreciation of the rupee to an all-time low and other concerns like probability of yen carry trade unwinding and a sharp sell-off in the banking stocks gripped the equity markets.

The equity indices suffered significant losses last week. Nifty declined in all the five trading sessions and registered a 4.77 per cent fall.

The equity benchmark index cleared an important resistance last week and registered breakouts.

Nifty broke out of a sloping channel with a sharp bounce of over 1,088.40 points or 4.68 per cent on Friday and Monday.