Corrective phase looms
The broader market also traded in a range as the Nifty Mid-Cap and Small-Cap Index closed lower.
Mumbai: The market is likely to be in a correction mode in the coming week, as investors will be reacting to the negative triggers in the Union Budget.
According to analysts, any technical pullbacks will face stiff resistance, as the Nifty is likely to face strong resistance at 11,900 and 12,040 levels in the coming week, while supports may come in lower at 11,750 and 11,610. In the event of any weakness, this band may widen some bit.
The benchmark index witnessed profit booking post the Union Budget on Friday as it gave up most of its weekly gains to close marginally higher by 0.2 per cent at 11,811 levels.
The broader market also traded in a range as the Nifty Mid-Cap and Small-Cap Index closed lower.
"The weekly price action resulted in a small bear candle with a long upper shadow signalling profit booking near the upper band of the last six weeks consolidation (12,000). However, larger price structure has not deteriorated and therefore one should not panic at current levels as going forward, we expect index to extend the last six weeks consolidation in the broad range of 12,000-11,600. Stock specific activity will be in focus in the coming week as participants will react to Budget find print and onset of Q1FY20 earnings season," said Dharmesh Shah, Head - Technical, ICICI Direct.
The Index has already taken 23 sessions to retrace 90 per cent of the previous 11 sessions up move (11,591-12,103), a slower retracement of the previous up move signals a robust price structure and a corrective nature of the current decline.
"We believe the Nifty has undergone healthy consolidation by oscillating in the broader range of 12,000-11,600 post exit poll session, helping the Index to form a strong base around 11,600 levels," said Dharmesh Shah, ICICI Direct.
Experts feel that the Indian equity markets look ready to remain under bearish pressure for a long time and many fear that every upward rally in Indian equity markets will be sold by FIIs and DIIs during the upcoming week.
It is expected that Monday's move of Indian equity indices will finally evaluate the impact of budgetary announcements and that the overall trend of the Indian equity markets will remain bearish under growing volatility during the upcoming week.
"We might see the overhang of the Union Budget on Monday,” Jayant Manglik, Presid-ent-Retail Distribution, Religare Broking, said.