A mixed trend was witnessed on the sectoral front and the broader indices also slipped marginally in the red after the recent surge.
On the other hand, improvement in the macro environment, improving demand and reopening of the economy is signalling positivity.
Markets languished in the negative territory for a major part of the session as Asian cues were mixed.
Technically, the narrow range activity near the 20 day SMA clearly indicates indecisiveness between the bulls and bears.
The intraday trading set up suggests 17,950 would be the key support level for the traders.
The index received buying support as it moved near a rising trendline on the hourly chart.
The range breakout on the upside will be considered once the index crosses the swing high of 18,112.
The index was unable to get past the 18,100 level which is the critical juncture at this point in time.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities Nifty has been in a consolidation phase since the past few trading sessions.
Technically, Nifty has just settled above the Pivot Point indicating a bounce-back movement in the counter.
Also, the stochastic indicator is witnessed with a positive crossover.
Market sentiment has been somewhat weaker with respect to institutional flows over the last week – FIIs have been net sellers worth Rs 4000 crore in cash segment and Rs 2500 crore in stock futures in Nov so far.
Auto sector has been benefiting from cooling off of metals prices, which have acted a headwind to margins, as well as a cut in fuel excise duties.
If the market is able to sustain the said level, it can witness a positive momentum in the market which can lead to the higher levels near 18,250.
Among sectors, PSU Bank, Realty and Metal indices down 1-2 percent, while buying was seen in the auto, pharma and oil & gas names.