Nifty formed a Doji candle on the daily chart, signifying indecision in the market.
Market opened lower and remained in a range, enduring bouts of volatility, throughout the session.
Indices remained rangebound as investors' risk appetite was subdued after the strong rally of the last few weeks which saw valuation of many stocks shoot up.
Profit-taking in select frontline stocks amid weakness in other Asian markets weighed on Indian bourses.
Market participants were picking quality stocks as valuations are pricey with several stocks trading at 3.5 times price to book.
Select small & midcap names as consolidation in several sectors has benefited select companies who have used the pandemic to gain share.
Indices remained rangebound in Trade today after a stellar run in the index stocks during the past few weeks, making India one of the best performing markets globally last month.
Last four days, Nifty has been hovering between 17250 and 17435. At the same time, Nifty has been taking support at 17250.
As long as the index is trading above 17250, Bullish formation is likely to continue up to 17450/17500 level. However, trading below the same could possibly trigger correction up to 17212/17150 level.
Good support zone for the index is coming near 17300/17250 zone and if it manages to hold the above said level, we may see the next move towards 17430/17500 zone. Fresh buying can be seen above 17500.
If that were to happen, we will be locked between 17250 and 17450. If we can get past 17450, we will resume the uptrend and achieve higher targets. A buy on dips would be a good strategy to implement.
Sector Wise :- Midcap and smallcap indices outperformed the benchmark Sensex and extended their winning run into the third consecutive session. Metal, utilities and basic materials rose over a percent each.