The 50-pack index closed the day at 16,942, up 237 points or 1.42 per cent.
During the day, the NSE barometer not only witnessed a gap-up start but also saw follow-through buying, which suggested that the bulls were in complete control.
“The index not only tested the daily upper Bollinger Band, but attempted to extend beyond that. The index is now stone’s throw away from the 17,000 mark. Beyond that, Nifty50 can stretch to the 17,200 level in the short term. Immediate support has shifted higher to the 16,850 level,” said Gaurav Ratnaparkhi of Sharekhan.
Rohit Singre of LKP Securities advised traders to book some gains near the 17,000 mark and go for fresh buying on ang dip near 16,850 level. This analyst said since the index has reached its immediate target, some resistance is likely at the 17,000 level.
Unlike in the recent past, the Monday’s bullish gap was met with a follow-through buying probably due to a short-covering rally seen above the 16,700 level, said Mazhar Mohammad of Chartviewindia.in.
“Nifty50 needs to sustain above Monday’s gap zone of 16,764-722 levels to retain a positive bias. In that scenario, the current strength in the Nifty50 may get extended towards 17,135 level. A close below the 16,720 level can be considered as an initial sign of weakness, which can possibly drag the index towards the 16,565 level,” he said.
