While analysts see more upside opportunities ahead, any such gains would be confined to the 15,700-850 range, they said.
“The area of 15.670-15,700 previously acted as support and is now acting as a resistance zone according to the principle of role reversal. Unless the 15,700 level is taken out on a closing basis, the Nifty50 could move back towards the 15,400 level. Structurally, Nifty50 is expected to see consolidation where the tight range will be 15,400-15,700,” said Gaurav Ratnaparkhi of Sharekhan.
During the day, the index closed at 15,638.80, up 288.65 points or 1.88%.
Gemstone Equity Research’s Milan Vaishnav said Tuesday’s return has been much-anticipated and in line with expectations, thanks to the bullish RSI divergence that has developed over the past few days.
Vaishnav said a strong bullish candle reflects a consensus on direction among market participants.
“Importantly, a bullish window appeared on the candle; This leads to a gap on the upside and mainly resolves as the trend continues to be confirmed. Apart from some consolidation that can be expected, Nifty50 is likely to inched higher towards the 15,700-15,750 zone; this is the pattern support it breached on the way down. Going forward, Nifty50 has a gap to negotiate between 15,800-15,160 levels,” he said.
Chartviewindia.in’s Mazhar Mohammad said that however suggested that strong selling pressure could emerge around the 15,900 level. The upside from current levels could be capped at 15,863, he said, noting that it is the top of a kind of long Black Day formation, registered on June 16.
“Furthermore, the lower end of the bearish spread of 15,886 and 16,172, registered on June 13, are also close to current levels. Hence, the upper side looks limited between 15,850-900 levels. Meanwhile, on the downside, Tuesday’s upside spread area of 15,419 and 15,382 could act as support if this pullback is to the upside,” said Mohammad.
Bank Nifty
Chandan
said that Nifty Bank was above its opening, even after wild volatility and ended the day with a gain of about 500 points.
“It formed a small body Bullish candle on the daily frame with a longer shadow indicating higher volatility. Now, it must hold above 33,000, to rally to the 33,500 and 33,750 levels. Support for this index is at 32,750 and 32,500,” said Taparia.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of the Economic Times)
