For the last 33 sessions, the Nifty50 was moving in a downsloping channel and Tuesday’s reversal occurred after testing the lower boundary of the said channel, said Mazhar Mohammad, Chief Strategist Technical Research at Chartviewindia.in.
Mohammad said the index has good support at 15,800 and resistance at 16,133, a strong close above, which can eventually extend the pullback towards 200-day EMA, whose value is placed at 16,700.
“For time being positional traders with high-risk ability can create long positions preferably on the dip as stop shall remain below 15,670 level,” he said.
For the day, the index closed at 16,013.45, up 150.30 points or 0.95 per cent.
Rupak De, Senior Technical Analyst at LKP Securities, said the index formed a Bullish Engulfing pattern for the daily chart, suggesting a short-term positive reversal.
“On the higher end, the index may move towards 16,200-16,400 over the short term. On the lower end, 15,800 is likely to act as support” De said.
Shrikant Chouhan of Kotak Securities said as long as Nifty50 holds a 15,900-15,850 support zone, the reversal formation is likely to continue.
“Above this range, the chances of hitting 16,150-16,250 would turn bright. On the flip side, below 15,850 uptrends would be vulnerable,” he said.
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