Nifty ended with strong gains for the second consecutive session thanks to softening crude prices and the return of foreign investors as buyers of Indian equities.
Sensex closed 1047 points, or 1.84 percent, higher at 57,863.93 while Nifty ended with a gain of 312 points, or 1.84 percent, at 17,287.05.
On the technical front, Nifty made a strong bullish candle on the weekly charts and support for the index has shifted to 17,000 from 16,800 level.
"The support for Nifty has now shifted to 17,000 from 16,800 and as long as the index is holding 17,000 level, the uptrend wave will continue till 17,450 and could lift the index up to 17,600. However, 17,000 could be the sacrosanct support level for the Nifty and close below the same could see Nifty hitting 16,900-16,800 levels," said Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities.
The market has been witnessing an uptrend for the last two weeks and benchmarks Sensex and Nifty have risen over 6 percent each during this period.
"In the last eight trading sessions, rally from the lows of 15,671 added around 1,600 points, leading to two back to back strong bullish candles on the weekly charts. This perhaps is hinting at a durable bottom around recent lows of 15,671," said Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in.
"Based on the 37-day old downsloping channel breakout, registered on March 14, a higher target of 17,900 cannot be ruled out. However, owing to the sharp rally of the last few trading sessions, some pause for one or two trading sessions, owing to profit-booking, cannot be ruled out. However, dips shall remain an opportunity to create fresh longs. The current positive outlook shall be negated if Nifty closes below 16,990 levels," said Mohammad.
As per Rahul Sharma, Co-Founder, Equity99, 17,250 will act as very strong support for the Nifty after which, the next support is at 17,180. On the upper side, 17,340 will act as very strong resistance, post which 17,460 will be the next hurdle. Once this level is broken, the next resistance will be around 17,535, said Sharma.
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