“Despite a sharp price cut on Thursday, the index lacked fresh short positions and, hence, the panic looked temporary in nature. The immediate support for Nifty50 now stands at 11,580. With most of the momentum indicators cooling off, it will be ideal to wait for more clarity on price, as sectoral rotation remains interesting,” said Sacchitanand Uttekar of Tradebulls Securities.
He said any consolidation within the 12,050-11,700 range would be a healthy sign for the ongoing bullish sequence. “With no sign of trend reversal yet or lack of strength within the ongoing momentum, short-term traders should retain their momentum longs as long the index holds the 11,580 level intact,” he said.
For the day, Nifty closed at 11,762 level, up 82.10 points or 0.7 per cent.
“Nifty50 has a small bullish body with a long lower shadow after taking support at the previous day’s low of 11,660, making a double bottom at this crucial support zone. If the bulls manage to take the index beyond 11,800 level a short-covering rally would extend it to 11,870-11,935 levels. If the bears manage to push the index below 11,660 level, fresh selling pressure may set in,” said Aditya Agarwala, Senior Technical Analyst, YES Securities.
Mazhar Mohammad of Chartviewindia.in said any rally may remain vulnerable to selloff.
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“As long as Nifty50 sustains above the 11,661 level, it can make an attempt to recoup some of the losses by rallying into the 11,843-885 zone. A breach of the 11,661 level shall not only resume the downswing, but also confirm a multi-week top around the 12,025 level,” he said.