As the Nifty Midcap index has been consolidating for the last 14 sessions, it is being believed that the ongoing second phase of consolidation would make the market healthy and form base for the next leg of up move towards 11100 points levels in the coming weeks.
The weekly price action resulted in a bear candle with small upper shadow, while maintaining a higher high and higher low, thus signalling consolidation after the recent sharp up move.
The index on expected lines tested the immediate target of 10760 points on Monday's session, followed by a round of profit booking in the last three sessions. It is being expected that the index during the current corrective decline to hold the crucial support area of 10400-10450 points.
According to business experts, the Nifty may form a higher base during the current consolidation in the broad range of 10760 to 10450 points amid stock specific action.
Hence, the current consolidation should be capitalized to accumulate quality midcap stocks in a staggered manner.