Benchmark index witnessed profit booking post-Union Budget as it gave up most of its weekly gains to close marginally higher by 0.2 per cent at 11811 points level. The broader market also traded in a range as the Nifty Midcap and small-cap index closed lower by 0.9 per cent and 0.2 per cent respectively.
However, larger price structure has not deteriorated and therefore one should not panic at current levels as going forward. Experts expect the index to extend the last six weeks consolidation in the broad range of 12000 to 11600 points.
The index has already taken 23 sessions to retrace 90 per cent of the previous 11 sessions up move from 11591 to 12103 points, a slower retracement of the previous up move signals a robust price structure and a corrective nature of the current decline.
According to the experts, the Nifty has undergone healthy consolidation by oscillating in the broader range of 12000 to 11600 points post exit poll session, helping the index to form a strong base around 11600 points level. Last month’s healthy consolidation of 12000 to 11600 points has helped the weekly stochastic oscillator to cool off the overbought condition.
Going ahead, it is being expected that the index may maintain the same rhythm and hold the key support of 11600 to 11500 points.