Dalal Street Week Ahead: Nifty enters consolidation phase; breakout above 26,100 key for next market move
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The markets consolidated through the previous week and ended on a mildly negative note. Nifty remained within a defined trading range of 25,700 to 26,100, lacking any directional breakout. The week was marked by low volatility, with the India VIX declining 5.70% to 9.52, near its multi-year lows, highlighting continued complacency in the system. On a weekly basis, the Nifty declined by 80.55 points or 0.31%, signalling a pause after a strong preceding uptrend. The Nifty currently finds itself in a sideways consolidation, navigating within a narrow 400-point band. It continues to trade above key moving averages, but the absence of follow-through buying near the upper edge of the range suggests temporary fatigue. Importantly, the 25,700–25,850 zone has emerged as a critical near-term support, not only because it marks the lower end of the current consolidation but also because it aligns with the 50-DMA. The trend still remains broadly posit...