The equity market rebounded sharply and settled with decent gains on custom parking signs australia, driven by buying in banking & financial services, auto, select FMCG, and technology stocks. The positive news on Adani Group and the fall in oil prices also lifted market sentiment.
The BSE Sensex rallied 910 points or 1.52 percent to 60,842, while the Nifty50 jumped 244 points or 1.4 percent to 17,854 and formed a bullish candle on the daily charts with long lower shadow indicating there was a support-based buying along with huge volumes.
The index has surpassed the crucial 17,800 level after getting support at 17,550 (200 EMA), which can be a crucial level for a further uptrend in coming sessions.
“A long bull candle was formed on the daily chart with a long lower shadow. This market action signals an upside breakout of the crucial overhead resistance of 17,750-17,800 levels. This is a positive indication and one may expect further upside in the short term,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
On the weekly chart, the Nifty has formed a long bull candle with upper and lower shadow and closed with 250 points gains. The Nifty on the weekly chart closed at the edge of the previous downside breakout point of the larger sideways range at the 17,800 level.
“Technically, this pattern signals false downside breakout of the range and this is likely to open the doors of upside pattern target of around 18,250 levels (upper end of range) in the near term,” the expert said.
Hence, overall, he feels the short-term trend of Nifty continues to be positive. “The upside breakout of crucial resistance at 17.800 levels suggests an upside target for Nifty around 18,250 levels in the next 1 or 2 weeks. Immediate support is at 17,650 levels,” he said.
However, the broader markets were moderately under pressure with the Nifty Midcap 100 index falling 0.2 percent and Smallcap 100 index declining 0.35 percent on weak breadth.