Sensex closes 874 points, Nifty closes above 17,300 levels

Sensex closes 874 points, Nifty closes above 17,300 levels

The benchmark indices started the week on a negative note as the Sensex plummeted 1,496. 54 points or 2.56 per cent of the total was 56,842, or 54 points or 2.56 per cent. 39 was dragged down by heavyweights Infosys and HDFC twins amid a weak trend in Asian markets.

The indices closed higher for the second consecutive session on Thursday, led by gains in HDFC twins, Infosys and Reliance Industries, amid a mixed trend in global markets. Sensex went up by 874.18 points or 1.53 per cent to end at 57,911. 68 and Nifty rallied 256.05 points or 1.49 per cent to 17,392. Who will win the battle on Friday on Dalal Street? Bulls or Bears? According to Sumeet Bagadia, Executive Director of Choice Broking, the highest call OI is at 18,000 strike price followed by 17,500 strike prices while the highest OI is at 17,000 strike price followed by 17200 strike prices.

He stated that the nifty index has confirmed the breakout of the Bullish Harami Candlestick pattern on the daily chart, which suggests a reversal of the move in the index. The index moved above 100 days Exponential Moving Averages, which indicates a bullish strength for the coming day.

The momentum indicator RSI 14 Stochastic witnessed a positive crossover, which supports the immediate trend. The nifty index was above 200 HMA on an hourly chart, which suggests a positive side move. The index is currently at 17180 levels, while the resistance is at 17600 levels. Bank nifty has support at 36200 levels and resistance at 37400 levels on the other hand.

Nifty 50 closes its day above good resistance zone of 17,300. If the index holds above 17,300 mark for coming trading sessions then we may see more upward move towards 17,500 -- 17,800 mark, which is another resistance zone on the upside. Mohit Nigam, head PMS, Hem Securities said that the Crucial Support for Nifty 50 is 17,000, while the Nifty may face some resistance at 17,500.

Shrikant Chouhan, head of Equity Research Retail Kotak Securities said, "We are not of the opinion that the short-term texture has changed to positive, but due to overstretching intraday formation, range-bound activity is not ruled out." The immediate hurdle on the Nifty would be 17,500 -- 17,550. On the flip side, 17,300 -- 17,275 would be a crucial support zone for the day traders on the Nifty. The intraday texture is mildly overbought. The strategy for day traders would be to buy on dips and sell on rallies. Markets had a strong sell off during the last hour of Tuesday and we refrained from changing our bullish stance because of the fact that it looked a bit abnormal. With today's spectacular move, this view is clearly validated and the way we closed today around the highest point of the day, as well as the bulls, said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd.

It is likely that 17,300 followed by 17,200 are going to provide an immediate cushion. He said traders are advised to use declines to buy into and to focus on thematic moves.