Nifty formed a dragonfly Doji candle pattern on the daily chart which signifies indecision in the markets.
Nifty breached its previous day’s low but buying interest at declines made it to close above 17350. Nifty formed a hammer sort of candle on daily chart with long lower shadow, indicating buying interest is intact at any declines.
In a volatile session of trade today, Bulls managed to stage a smart comeback led by the pace of vaccinations and accumulation witnessed in Kotak Mahindra Bank.
Broader markets witnessed interest in textile stocks on the back of the PLI scheme announced today. Late afternoon session saw advances gain ground over declines as several midcaps were seen buzzing.
Market witnessed a small correction and a reversal from the support at 17250. Market suggests that 17200/17250 will be an important support zone to stay positive in the short term.
If the market is able to sustain the level of 17200/17250, it can witness higher level of 17500. Indicators suggests a volatile movement in the market in a small range between 17200/17500.
Any break above the mentioned resistance may result in good traction and can make the index inch towards 18000 mark. Immediate support is still placed at the 17300/17250 zone and traders can use it as their trailing stop out level.
Technical setup is showing that the market is finding strong resistance around 17500. If the market breaches this level, a move towards 18000 will be the next target.
Mid and smallcaps outperformed the frontline stocks as the Midcap index clocked a gain of 0.81 percent while the smallcap index settled 0.55 percent higher.
Sector Wise :- Nifty Bank, private bank, PSU bank and financial services indices rose about a percent each. On the flip side, IT, media, auto and pharma indices ended in the red.