Nifty clocked strong gains on May 17, boosted by strong show by metal & mining, and energy heavyweights such as Hindalco, Tata Steel, Coal India, ONGC and Reliance Industries.
The index opened at 15,912.60 against the previous close of 15,842.30 and touched intraday high and low of 16,284.25 and 15,900.80 respectively.
The index eventually closed 417 points, or 2.63 percent higher at 16,259.30 with all stocks in the green.
Nifty Metal index jumped 6.86 percent, followed by oil & gas index which logged a gain of 3.68 percent and media index which rose 3.01 percent.
Ajit Mishra, VP - Research, Religare Broking pointed out Nifty has decisively surpassed the critical hurdle at 16,100 and we are now eyeing the 16,400-16,600 zone.
"Since all the sectors are participating in the rebound, we suggest focusing more on stock selection. In absence of any major event, global markets will remain in focus for cues," said Mishra.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said Nifty, on daily charts, has formed a long bullish candle which is broadly positive in the short term.
"For the trend following traders, 16,150 would be the trend deciding level, above which the positive momentum is likely to continue till 16,380-16,450. On the flip side, a quick intra-day correction is possible if the index slips below 16,150. Below the same, the index could retest the level of 16,080-16,050," said Chouhan.
"Nifty50 registered a robust bullish candle on the back of a highly strong advance-decline ratio in which 6 stocks closed in positive terrain for every single stock that closed in a negative zone. Therefore, it appears that the index has embarked on a sustainable pullback rally whose initial target appears to be into the bearish gap zone present between 16484 and 16651 levels registered on May 6," said Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in.
"The near term trend shall remain positively biased as long as the index sustains above 15,900 level. However, a close below 15,900 shall dissipate the positive momentum and may induce more weakness in the market. While dips may look like a buying opportunity technical stop loss levels will remain below 15,900," said Mohammad.
Disclaimer: The views and recommendations made above are those of individual analysts and not of MintGenie.