Analysts said the defending of the 15,800 level holds key. A breach of the 15,900-920 range will turn the sentiment bullish, they said.
Chandan Taparia of Motilal Oswal Securities said the NSE barometer needs to hold above the 15,800 level to see a move towards 15,915 and 16,000 levels. Downside supports are seen at 15,700 and 15,600 levels, he said.
Mazahar Mohammad of Chartviewindia.in echoed a similar view. He said as long as Nifty sustains above Monday’s minor gap area of 15,762–738, the index can retest the life-time high of 15,915, he said.
“But for a sustainable bounce, Nifty50 needs a close above 15,900 level, which will open up a higher target of 16,300 level,” he said.
Rajesh Palviya of Axis Securities said the bullish candle was a sizable candle. He cited Nifty50 negated the formation of lower lows and highs that he said indicated strength.
“Any sustainable move above 15,900 level may drive the index towards the 16,000-16,100 range. Any violation of an intraday support zone of 15,800 level may trigger profit booking towards 15,750-15,700 zone,” Palviya said.
As long as the index does not cross the 15,920 level, strong buyers would not enter the market, said Shrikant Chouhan of Kotak Securities.
At close, the index stood at 15,834, up 112 points or 0.71 per cent.
“The index has broken out of the falling channel on the hourly chart. Also, the daily Bollinger Bands are about to expand after a sharp contraction. This shows that a sharp move is in the offing and that is expected to develop on the upside. Nifty50 is now approaching the key barrier of 15,900 level. Once that level is crossed on a closing basis, it will be set for a swift rally towards 16,400. On the downside, the swing low of 15,635 will now act as a crucial support,” said Gaurav Ratnaparkhi of Sharekhan.
