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The Nifty has closed below the lows of the previous three trading sessions on the daily charts, which indicates weakness. Experts believe the index is in the process of retracing the rise witnessed from 22,710–22,776, and has been consolidating thereafter.
The recent consolidation in Nifty amid weak global cues indicates time-wise correction and traders should maintain a positive bias until the Nifty holds 22,200 level, sayd Ajit Mishra, SVP - Technical Research, Religare Broking.
In this week, BSE Sensex rose 596.87 or 0.81 percent to finish at 74,248.22 and touched record high of 74,501.73. Nifty50 index gained 186.8 points or 0.83 percent to close at 22,513.70 and touched new high of 22,619.
The Nifty encountered initial resistance near its previous swing high of 22,526. Consequently, to sustain a continued rally, it must surpass the 22,525 level decisively. On the downside, 22,200 could serve as short-term support, says Rupak De, Senior Technical Analyst, LKP Securities.
All the sectoral indices ended in the green with Nifty Information Technology added 7 percent, Nifty PSU Bank and Metal indices rose 5 percent each, and Nifty Realty index gained nearly 4 percent.
BSE Sensex shed 78.22 points, or 0.12 per cent, to settle at 65,945.47. NSE's Nifty50 retreated 9.85 points, or 0.05 per cent, to end at 19,664.70 for the day.