The market ended higher for the second straight day on Wednesday 9th March with Nifty closing above the 16300 level. At the close, the Sensex was up 1223 points to 54647 and the Nifty was up 331 points to 16345. Markets continued yesterday's recovery, gaining over 2%, following the recovery in global indices. After starting flat, the benchmark gradually rose throughout the day and settled closer to the daily high. The recent rebound is in line with global counterparts and it would be too early to speak of a reversal. Alongside the geopolitical updates, domestic factors i.e. the state election results, are in focus. We expect volatility to remain high, so participants should favor hedged trades.
The Nifty formed a bullish outside bar along with an
engulfing bull candle on the daily chart on March 8th. As a result of these
bullish patterns, the index saw a sustained recovery on March 9th. On the way
up, the index has crossed the major hourly moving averages as well as the key
16200 hurdle. The hourly momentum indicator, which was showing positive
divergence, is now firmly in positive territory. The overall structure shows
that the recovery from a strong support zone, i.e. 15850-15750, and that the
recovery is expected to continue. Going forward, the index is expected to test
the crucial 16500 barrier where it stumbled over the past week.
Resistance: 16450, 16550, 16650
Support: 15850,
15750, 15650
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