The index moved above its 50-day and 200-day moving averages as it ended up forming a bullish candle on the daily chart, with a long lower wick, suggesting buying interest at low.
“We saw buying interest as the index approached the 17,000 mark. Monday’s low of 17,000 will be seen as a sacrosanct and till the support is intact one should avoid forming short positions,” said Ruchit Jain of 5paisa.com.
Jain said the immediate hurdle for the index is at 17,300, followed by the 17,450-17,500 range.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said the daily chart formation looked like a Bullish Hammer but having moved in a narrow range movement for a few sessions, such a pattern could be less predictive.
“The short term trend continues to be range-bound,” he said.
Independent Analyst Manish Shah said the MACD is in a buy mode, and the 20-day moving average has ‘curled’ up.
“A green key reversal candle signals a possible move higher to 17450. The moot point is that will the Nifty50 break above 17,450 and trade higher. We expect Nifty50 to head towards 17,450 before or at the end of March F&O expiry,” Shah said.
Shrikant Chouhan of Kotak Securities said that the broader texture of the market is still non-directional.
“In the near future, as long as the Nifty50 is holding the 17,100 level, the market is likely to retest 17,325-17,400 levels. However, if the Nifty50 falls below the same, it could trigger further weakness,” he added.