On the downside, 11,544 appears to be the critical support for near term, a breach of which shall confirm weakness with initial targets placed around 11,300, Mazhar Mohammad said.
The Nifty50 after opening strong remained rangebound on the positive side and extended gains in late trade to close higher on April 5 after two-day weakness. Positive global cues, and buying in banking & financials, technology and metals led the rally.
The index closed above 11,650 levels and formed small bullish candle which resembles a 'Spinning Top' kind of formation on daily candlestick charts.
For the week, the index gained 0.4 percent and formed 'Long Legged Doji' pattern on weekly scale.
Spinning Top is often regarded as a neutral pattern which suggests indecisiveness on the part of both bulls as well as bears. It can be formed in an uptrend as well as in a downtrend.
A typical long-legged Doji pattern is formed when the opening price is almost equal to the closing price but there was a lot of intraday movement on either side.
The Nifty50 after opening higher at 11,665.95 remained rangebound with a positive bias and in late trade, it extended gains to hit an intraday high of 11,689.65 led by buying interest in heavyweights counter.
It has recently taken support at previous swing high of 11,550 zone and got stuck in between 11,550 to 11,760 zones from last six trading sessions. It closed at 11,665.95, up 0.59 percent.
"Albeit Nifty50 signed off the week on a positive note, it registered indecisive formations on both weekly as well as daily charts. On weekly chart a Long legged Doji was registered where as a mild bounce in Friday's session depicted Spinning Top kind of formation suggesting that traders are clueless about further direction after 7 consecutive weeks of positive closes," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
He said, going forward, some sort of consolidation with negative bias can't be ruled out with upside remaining capped around 11,760 levels for time being.
On the downside, 11,544 appears to be the critical support for near term, a breach of which shall confirm weakness with initial targets placed around 11,300, he added.
Contrary to these expectations if strength continues then bulls can manage a retest of recent swing highs placed around 11,760 levels, according to him.
As long as Nifty trades below 11,760 levels, Mazhar Mohammad advised to avoid buying into the indices on dips.
India VIX fell by 1.39 percent to 18.39 levels.
VIX started to hold at higher levels so it requires a cool off to shifts the market base to higher zones, experts said, adding Option band signifies an immediate trading range in between 11,500 to 11,800 zones.
On the Option front, maximum Put open interest (OI) is at 11,000 followed by 11,500 strike while maximum Call OI is at 12,000 followed by 11,800 strike.
Minor Call writing is at 11,700 followed by 11,900 strike while Put writing is at 11,600 followed by 11,700 strike.
"Nifty index formed a small bodied Bullish candle on the daily scale while a Doji candle on weekly scale which indicates that declines are being bought in the market," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.
Now index has to hold above 11,600 zone to witness an upmove towards 11,760 zones while major support exists at 11,550 zone, he added.
Bank Nifty remained in a small trading range and formed an inside bar or a Bullish Harami pattern on daily scale as it traded inside the trading range of last session. It formed a bearish candle on weekly scale. The index closed 179.75 points higher at 30,084.65."Now it has to continue to hold above 30,000 zone to witness an up move towards 30,500 then 30,650 zones while support exists at 29,888-29,800 zones," Chandan Taparia said.