A close above 11787 will take the index towards recent swing high of 11,856 levels and march ahead towards 12,000 kinds of levels.
Traders should remain neutral on indices till some signs of stability and strength are visible, suggest experts.
The index slipped below its crucial support of 11,600 and the next crucial support was now placed at 11,550, experts said, advising traders to avoid buying the current dip.
The only spoiler for the market is crude oil which is in its 7th-week of consecutive gains. Though appreciating rupee balances the sentiment for the equity market, suggest experts
Investors should stay put and avoid profit booking at higher levels because chances of a further rise in markets look likely, suggest experts.
The price action seen on April 15 is not strong enough to push the market higher and for major upside, the index has to register a strong close above its record high of 11,761, experts said.
It now requires a decisive hold of 11550 zones to retest its lifetime high of 11761 and then a fresh move towards 11888 zones, suggest experts.
Unless the index emerges out of the trading range which appears to be 11,710–11,550, a directional move can't be witnessed. On the downside, it looks critical to sustain above 11,550 levels on closing basis breach of which shall strengthen the bearish sentiment.
A close below 11550 could drag the index lower towards 11500-11520 levels, while a break below 11500 levels could trigger further profit taking.
Major upside in the market is possible only if Nifty decisively closes above its record high of 11,761 which it touched last week, experts said.
If this bearish structure is unfolding then ideally Nifty shall not get past 11,710 kind of levels going forward.
Industrial Production data for February and CPI Inflation for March will be released on April 12 after market hours.
A close below 11500-11550 could put further pressure on the markets while a close above 11761 would restore bullish momentum.
If Nifty breaks below its crucial support level of 11,550, selling pressure could accelerate. Experts are of the view that a 25 bps rate cut is something which is factored in by markets.
Weakness shall get materialised once bears manage to pull down the Nifty below last Monday's gap zone of 11,644–11,630 levels on closing basis, suggest experts.
In the next trading session, a close below 11,630 can act as a confirmation for short-term weakness that can set a bearish tone for the near term.
Sensex rallied more than 2,800 points or 7.8 percent in March to post its best monthly gain since 2009 when it rallied 9.1 percent in the same period
Experts advise short term traders to maintain long positions with a stop below 11,450 on a closing basis and look for new lifetime highs.
In the next trading session if Nifty closes below 11,400 then selling pressure may get further accentuated in the new series.
Bulls can make an attempt to retest recent swing high of 11,572, aided by more short covering ahead of F&O expiry.
Going forward, the central banker's reaction to this imminent global slowdown (in terms of easy monetary policy, etc), upcoming corporate results season and political dynamics will hold the key, suggest experts.
If Nifty closes below 11,412-11434 levels on Monday then it may set the tone for bigger correction which may eventually lead the index towards 11,230 kinds of levels, say experts.
This rangebound move is expected to continue in coming sessions, experts said, adding the decisive close above 11,556 could take the Nifty beyond 11,600.
Traders should refrain from creating short positions in anticipation of a corrective swing unless weakness gets confirmed in one or the other way.