Technical View | Yet another bullish candle suggests Nifty heading towards 16,750

Stock Market Today:

Stock Market Today:

The Nifty gained more than 2 percent on March 9, its best showing in more than two weeks, as all sectors, barring metal, aided recovery for the second straight session. The rally in European markets also boosted sentiment, though oil prices remained elevated amid the ongoing Russia-Ukraine war.

The index formed a strong bullish candle on the daily chart as the closing was higher than the opening level, indicating the rally could be headed towards 16,750-16,850, experts said.

Volatility dropped to 27.47, down 3.91 percent from previous close but India VIX, the fear index, has to drop to 20-22 levels to strengthen the bulls.

After opening higher at 16,078, the Nifty overcame volatility to hit an intraday high of 16,418. It closed at 16,345, up 332 points.

“Strong follow-through to Tuesday’s trading session is hinting that market is on a sustainable pullback mode,” said Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.

Also read: Gainers & Losers: Five stocks that moved the most on March 9

The Nifty strongly recoiled from the lower boundary of the 34-day old downsloping channel and could head towards the upper boundary of the said channel, whose value is placed around 16,750, he said.

The value of 200-day exponential moving average (EMA) and 20-day simple moving average (SMA) is placed at 16,700 and 16,850, respectively.

Hence, “the current pullback swing can target the zone of 16,700 – 16,850 levels,” said Mohammad, any dip into the zone of 16,200 –16,100 can be an opportunity to create fresh longs with a stop-loss below 15,990 on a closing basis.

Also read: Markets surge over 2 percent: Key factors behind the bull run

On the option front, maximum Call open interest was seen at 18,000 strike then 17,000 strike while maximum Put open interest was seen at 16,000 then 15,500 strike. Marginal Call writing was seen at 16,800 strike then 16,700 strike while marginal Put writing witnessed at 16,000 then 15,700 strike.

Options data indicated that in the coming sessions, the Nifty’s trading range would be 16,000-16,800, moving ups from 15,500-16,500.

On the stock front, Cummins India, Indian Hotels, Trent, Reliance Industries, Container Corporation, Bharat Electronics, Aditya Birla Fashion, Muthoot Finance, Indian Energy Exchange, Adani Ports, Mindtree, United Spirits, Adani Enterprises, Federal Bank, Titan, Tech Mahindra, PFC, Tata Chemicals, PVR, Jindal Steel & Power, Colgate Palmolive, Infosys, Cipla, Sun Pharma, Aurobindo Pharma and Kotak Mahindra Bank witnessed positive set up, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services. Weakness was seen in Petronet LNG, ONGC, Power Grid Corporation and SBI Life, he said.

Also read: War may end soon, important to prepare for peace: Raamdeo Agrawal

Banking index

The Bank Nifty opened gap up at 33,279 and inched up to the day’s high of 33,969. Heavyweight counters drove the banking index that closed with gains of 657 points, or 2 percent, at 33,815 and formed a bullish candle on the daily chart.

“The index negated its lower-lows formation of the last six trading sessions. Now it has to hold above 33,500 levels for an upmove towards 34,250 and 34,500, whereas support can be seen at 33,500 and 33,333,” Taparia said.

The broader markets also joined the rally as the Nifty midcap 100 index gained 2.2 percent and the smallcap 100 rose 2.4 percent.

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