The Indian equity market is gearing up for a week of mix sentiments. Over the course of the last week, the benchmark Nifty50 index has extended its gains and reached near-term highs of 14,333.65 points on Monday. But some investors might be looking for a consolidation in the near-term as the index appears to be over-extended on charts. The Indian equity market has been on a roll in 2021 with the Nifty50 index gaining over 10% so far this year. The index has been on a steady up-move this week and touched its near-term high level of 14,333.65 points on Monday which is more than 4% up from its previous week-low level. However, investors should be aware that the index appears to be over-extended on charts as the market is trading above its short-term and long-term moving averages currently. Moreover, the index has seen continuous higher peaks and higher troughs in the near-term indicating that the market is in an overbought position. Coupled with the fact that the index has already gone up 10% in the first two months of 2021, some experts believe that a consolidation phase in the near-term looks imminent. They suggest that investors should avoid chasing up-moves as they could be reversed quickly. Moreover, there are some key economic events lined up this week which could spark some volatility in the markets. These include the release of India’s industrial output data for the month of January, a policy review meeting of the Reserve Bank of India and the minutes of the US Federal Reserve’s monetary policy meeting. Investors should keep a watch on these events to track their potential implications for the Indian equity markets. Overall, this is an interesting week ahead in the Indian equity markets with a lot of economic events lined up. Investors should keep an eye on the above-mentioned events while avoiding chasing up-moves as the market appears over-extended on charts. It would be wise to look for signs of consolidation before deploying fresh positions in the markets.