While analysts see chances of more upside ahead, any such upside will be capped in the 15,700-850 range, they said.
“The area of 15,670-15,700 was earlier acting as a support zone and is now posing as a resistance zone as per the principle of role reversal. Unless the level of 15,700 gets taken out on a closing basis, Nifty50 can move back towards 15,400. Structurally, the Nifty50 is expected to see a consolidation where the tight range would be 15,400-15,700,” said Gaurav Ratnaparkhi of Sharekhan.
For the day, the index closed at 15,638.80, up 288.65 points or 1.88 per cent.
Milan Vaishnav of Gemstone Equity Research said Tuesday’s comeback was much anticipated and on expected lines, thanks to the bullish RSI divergence that had developed over the past couple of days.
Vaishnav said a strong-bodied bullish candle reflected a directional consensus among market participants.
“Importantly, a rising window emerged on the candle; this results out of a gap on the upside and mostly resolves with the continuation of the trend subject to confirmation. Apart from some consolidation that can be expected, the Nifty50 is likely to inch higher towards the 15,700-15,750 zone; this is the pattern support that it had violated on its way down. In the future, Nifty50 has a gap to negotiate between 15,800-15,160 levels,” he said.
Mazhar Mohammad of Chartviewindia.in said that however said that a strong selling pressure may emerge around 15,900 levels. Upsides from the current levels may be capped around 15,863 level, he said, noting that it was the top of a Long Black day kind of formation, registered on June 16.
“Moreover, the lower end of the bearish gap zone of 15,886 and 16,172, registered on June 13, is also nearby from the current levels. Hence, the upsides look capped between 15,850-900 levels. Meanwhile, on the downsides, Tuesday’s bullish gap zone of 15,419 and 15,382 may act as support if this pullback has legs on the upside,” Mohammad said.
Nifty Bank
Chandan
of said that the Nifty Bank was higher than its opening levels, even after the wild swings and settled the day with gains of around 500 points.
“It formed a small bodied Bullish candle on a daily frame with longer shadows indicating higher volatility. Now, it must hold above 33,000, for a bounce towards 33,500 and 33,750 levels. Support for the index are at 32,750 and 32,500 levels,” Taparia said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
