The Nifty50 opened on a negative note at 16,263.85 and slid to as low as 16,243.85. However, during the day, buying emerged at lows to take the index to as high as 16,492.80. Eventually, it closed up 121.85 points or 0.74 per cent at 16,478.10.
Rupak De, Senior Technical Analyst at
, said the daily RSI is in bullish crossover and rising. “Over the near term, the trend may remain positive as long as it remains above 16,400. On the higher end, resistance is visible at 16,600/16,800,” he said.
Early in the day, the Nifty opened near its short term 20-DMA, which presently stands at 16,294, analysts noted. However, it soon found support near that level and was up following a short-covering fueled rally.
“While the index formed a strong white-bodied candle which reflected directional consensus among the market participants, Nifty also moved past well above the crucial 16400 levels,” said Milan Vaishnav, Founder & Technical Analyst, Gemstone Equity Research.
“In the process, the index has shifted its most immediate support higher at 16,400. So long as the index keeps its head above this point, there are greater chances of this move getting extended further.”
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
, said, Nifty tested multiple support parameters on the downside, which were present near 16,300, including 20-DMA, a falling trendline and lower end of a rising channel.
“The daily momentum indicator has been in bullish mode, whereas the hourly momentum indicator developed a positive divergence and started a new cycle on the upside. This suggests that the Nifty50 is set for a leap towards the junction of the swing high and the daily upper Bollinger Band, which is near 16,800,” said Ratnaparkhi.
Bank Nifty also opened lower at 34,802.25 and fell to a low of 34,659.10 during the day. However, buying around the bottom led the index to as high as 35,149.10. The index closed up 0.40 per cent at 35,085.45.
“Bank Nifty has formed a piercing line pattern at the end of a volatile trading session. Besides, the Bank Nifty has moved back above 35,000 suggesting bullishness. Over the near term, the trend may remain positive as long as it remains above 35,000 levels. On the higher end, resistance is visible at 35,500/36,000,” said De of LKP Securities.