Nifty traded volatile in a narrow range throughout the day and ended in the green on May 16 after suffering losses for the six consecutive sessions.
The benchmark opened with an uptick, taking cues from the global counterparts however pressure in the IT majors and select heavyweights from other sectors capped the upside.
Nifty opened at 15,845.10 against the previous close of 15,782.15 and hit the intraday high and low of 15,977.95 and 15,739.65 respectively. The index eventually closed at 15,842.30, up 60 points or 0.38 percent.
Among the sectors, the Nifty PSU Bank index closed 2.91 percent higher while the realty index climbed 2.61 percent. The auto index rose 2.27 percent.
Sumeet Bagadia, Executive Director of Choice Broking pointed out that after forming the bearish candle on the weekly chart, the index has formed a Doji candlestick on the daily chart which shows indecisiveness among the trades.
Moreover, the index has also faced resistance from falling trend lines and showed profit booking from higher levels. However, Fibonacci retrenchment also has support around 15650 levels, said Bagadia.
"Traders may find buying opportunities for short term as if 15,650 is protected. In the hourly chart, with support of the middle Bollinger band short-term upside movement is expected. Stock-specific action would drive the market in the coming days too. On the derivatives front, the highest call OI is at 16,000 strike price followed by 16,200 strike prices while on the put side, highest OI is at 15,500 strike price," said Bagadia.
As per Mohit Nigam, Head - PMS, Hem Securities, key resistance levels for Nifty50 are 16,000 and on the downside 15,700 can act as strong support. Key resistance and support levels for Bank Nifty are 34,100 and 33,000 respectively.
Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in. underscored Nifty has been trying to defend its recent low of 15,735 for the last three trading sessions. Hence, as long as the Nifty sustains above the said low the hopes of a pullback attempt from the bulls will remain alive which will be confirmed on a close above 16100 levels.
"In that scenario, a decent target of 16,400 can be expected. However, as volatility in the recent sessions is higher, if the index breach 15735 levels on a closing basis then weakness shall resume with a target of 15400 levels. Considering the recent volatile moves it looks prudent to wait for some initial signs of strength which may confirm with a close above the psychological hurdle of 16,000 levels," said Mohammad.
Disclaimer: The views and recommendations made above are those of individual analysts and not of MintGenie.