The Nifty, which started with a gap of over 40 points in the morning trade on Tuesday, went on to reclaim its crucial resistance level of 9,100 and a bullish candle on the daily candlestick charts.
The market picked up momentum tracking positive trend seen in Asian markets and favourable domestic triggers. Short covering was seen in strike prices 8,900, 9,000, 9,100, 9,300 and 9,400.
The index briefly moved in a range for the most part of the trading day but with a positive bias. It pared some of the intraday gains and closed marginally above its crucial resistance level of 9,100.
The market could experience some volatility ahead of March expiry on Thursday, but investors should hold onto long positions as long as 9,075 holds.
“The Nifty index opened positive and witnessed sustained buying as it managed to hold above 9,075. It formed a bullish candle on the daily charts which is again giving comfort to bulls,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told moneycontrol.
“Recently, it made a double bottom near to 9,020 and respected to its 13-DEMA. Now it has to continue to hold above 9,075 to extend its up move towards 9,160 and 9,218, while on the downside supports are seen at 9,020,” he said.
The Nifty index on expected lines bounced back from its crucial support of 13-days EMA placed at 9,058. The index has bounced back nearly 10 times from this level so far in the year 2017.
The Nifty appears to have recouped previous trading session losses, on an intraday basis. It moved in an extremely narrow range of 30 points. It is important for Nifty to break past 9,133 on a closing basis to witnessed buying momentum.
The level 9,133 was recorded on Friday, March 24 when Nifty made a ‘doji’ pattern. Unless it closes above this level, the tussle between bulls and bears are likely to continue.
“Unless Nifty gets past 9,133 levels by expiry it can get stuck in a trading range of 9,133 to 9,024, creating more uncertainty about the direction of the market in the near-term,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told moneycontrol.
“Any push beyond 9,133 levels may take the indices towards next resistance point of 9,178 above which doors for new lifetime highs shall open once again. On the other hand if Nifty breaches 9,019 then it can resume its downtrend,” he said.