Nifty extended the gains into the second consecutive session on April 21 on healthy buying in most sectors.
The index opened at 17,234.60 against the previous close of 17,136.55 and touched intraday high and low of 17,414.70 and 17,215.50 respectively.
Eventually, the index closed 256 points, or 1.49 percent, higher at 17,392.60 with 42 stocks in the green and 8 stocks in the red.
Nifty Auto index clocked a gain of 2.23 percent and closed as the top sectoral index. Nifty Bank index settled with a gain of 1.38 percent at 36,816.10.
"Indications are in the favour of further rebound in the index however participation of the banking pack would be critical for any sustained move. Meanwhile, the focus should be on sectors like energy, auto, pharma and banking for long trades," said Ajit Mishra, VP - Research, Religare Broking.
Technicals
Sumeet Bagadia, Executive Director of Choice Broking pointed out that Nifty has confirmed the breakout of the Bullish Harami Candlestick pattern on the daily chart suggesting a reversal move in the index.
"Moreover, the index has moved above 100-days exponential moving averages (EMA), which indicates a bullish strength for the coming day. In addition, a momentum indicator RSI (14) & Stochastic witnessed a positive crossover, which supports the immediate trend," said Bagadia.
"On an hourly chart, the index also sustained above 200-HMA, which suggests a positive side move. At present, the index is having support at 17,180 while resistance is placed at 17,600. On the other hand, Bank Nifty has support at 36,200 while resistance at 37,400," Bagadia added.
Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, pointed out that with today’s move, the index also closed above the 200-day simple moving average at 17,185, giving a psychological advantage to the bulls.
"However, the index needs to completely bridge the bearish gap with a close above 17,457. In that scenario, eventually, the strength shall expand towards 17,856. Meanwhile, on the downsides, it needs to sustain above 17,215 to retain positive bias. Therefore, for the time being, it looks prudent to buy the dip with a stop below 17,200," said Mohammad.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint Genie.
