For a second consecutive week, Nifty oscillated in a narrow range amid high volatility as the index factored in most of the fourth quarter of last financial year earnings and rise in crude oil prices.
The index closed marginally lower at 11712 points levels, while broader markets underperformed the benchmarks as NSE mid-cap and the small-cap index closed the week lower by 1.5 per cent each.
The index has undergone healthy consolidation over the past five weeks in the broad range of 11550-11850 points. Lack of faster retracement on either side signals extension of the ongoing consolidation.
It is being believed that the stock specific action would continue amid consolidation between 11550 to 11850 points as the fourth quarter of last financial year earnings season accelerates and anxiety around General Elections outcome continues.
Over the past four weeks, Nifty midcap and small-cap indices have retraced just 38.2 per cent of preceding seven weeks up move. The slower pace of corrective decline signifies healthy consolidation, auguring well for the next leg of the up move. In this scenario, investors may look to accumulate quality stocks in a staggered manner.