There is a reason to believe so.
“The index has seen a sharp retracement of the recent fall. It retraced more than 61.8 per cent of the fall and is now headed towards the 78.6 per cent retracement mark, which is near the 14,560 level. The overall structure indicates that Nifty can still consolidate further, before commencing a larger rally,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
He said the index range has shifted higher to 14,200-14,600 zone. This is where Nifty can consolidate over the next few sessions.
Aditya Agarwala of YES Securities said a sustained trade above the 14,560 mark would extend the gains to 14,650 and 14,800 levels.
Check out the candlestick formations in the latest trading sessions
“Technical indicator RSI, too, has reversed from the 60 mark — being the upper end of the bear territory — clearly indicating that the intermediate trend has turned bullish. Immediate supports are now placed in the 14,400-14,350 zone. A close below 14,350 level will halt the current bullish trajectory,” he said.
For the day, Nifty closed at 14,521, up 239.85 points or 1.68 per cent.
Ruchit Jain of Angel Broking said he was surprised by Tuesday’s move. “Certainly the bulls have made a smart comeback, supported by global optimism. Going ahead, the 14,450 and 14,320 levels would be seen as immediate supports whereas the 14,600-14,620 zone would be the immediate range to watch,” he said.
Mazhar Mohammad of Chartviewindia.in advised traders to refrain from shorting the index unless it breaches 14,350 level. “Intraday traders with high risk appetite can consider going long on Nifty by making use of the opening dip, if any, in the first 30 minutes of Wednesday’s trade and look for a modest target at 14,620 level,” he said.