The index formed a doji pattern in the weekly chart for the third consecutive week and ended on a weaker note on Friday mostly driven by Banks and IT.
However, a lot of under performers including pharma, PSU banks, telecom, etc saw buying interest after some relief from the government with various problems which led to slowdown in the recent past.
The index entered in a consolidation mode in this month and break either side of the range may trigger fresh momentum. Probable support in the short term comes at 200 Hourly SMA; break below which next crucial support comes at 11650-11700.
On the upside, probable resistance comes at 12050 above which Nifty will enter in a new territory. Technical parameters including Stochastic, RSI, MACD and CCI are trading close to the oversold area and suggest weakness in the short term.
Nifty faced resistance from the double top area in the daily chart and the consolidation is likely to continue until it breaks either side of the range 11800-12050. The index also violated the uptrend line and likely to see some weakness in the short term.
The index bounced last day from 20 MA at 11877 which is likely to act as an immediate support and next support comes at 11800 which is the lower end of the rectangle pattern. Probable resistance comes at 12050 which are likely to act as a crucial resistance; break above which may lead to fresh momentum.
In the weekly chart, the index is forming Doji pattern since last three consecutive weeks which suggest indecision. Most technical parameters including RSI, MACD, Stochastic and CCI are trading in the overbought area and look strong as per technical parameters.