Analysts expect the markets to continue to trade range-bound and attributed the reason for uncertainty to the mixed signals from macro data. The latest wholesale price index (WPI) was benign but the consumer price index CPI breached the RBI's comfort zone.
"Technically Nifty formed a Doji candle with long upper shadow on daily scale which indicates absence of follow up buying interest at higher zones. It formed the Doji candle for second consecutive week, indicating indecisiveness among the market participants," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Khemka also said that the Nifty retested the breakdown trend line on an intra-day scale and corrected sharply, which is restricting its upside momentum, and now it has to hold above 11,850 levels to witness an upward move towards the 11,950-12,000 zones.
On the downside analysts see Nifty hitting the 11,780 levels.
Dharmesh Shah, Head - Technical, ICICI Direct, said that the weekly price action formed a "high wave candle carrying a lower high-low", indicating an extended breather amid stock-specific action.
"We expect the index to continue with the current consolidation in the coming weeks in a range of 11,700-12,000 which will make markets healthy by cooling off the overbought situation of the weekly stochastic oscillator formed after five week's of 940 points sharp rally," Shah said.
He also said that the current breather should not be suspected as negative but should be capitalised on as an incremental buying opportunity in quality cyclical stock as going ahead he does not foresee the index to breach the key support threshold of 11,700-11,600.
(Ravi Dutta Mishra can be reached at ravidutta.m@.in)
( With inputs from IANS )