The Nifty ended on a positive note after six straight days of losses in a highly volatile session on May 16, with gains in auto and financial names lifting the market.
Amid mixed Asian cues, the Nifty opened marginal higher and, extended gains as the day progressed and closed in on 16,000 but profit booking at higher levels dragged the index down.
The Nifty closed at 15,842.30, up 60.10 points, or 0.38 percent, and formed a Doji candle on the daily scale.
“For the last three trading sessions, the index is trying to defend its recent low of 15,735. Hence, as long as the Nifty sustains above the said low, the hopes of a pullback attempt from the bulls will remain alive, which will be confirmed on a close above 16,100 levels. In that scenario, a decent target of 16,400 can be expected,” Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, said.
As volatility has remained high, if the index breached 15,735 on a closing basis, weakness shall resume with a target of 15,400 levels, Mohammad said.
“Considering the recent volatile moves, it will be prudent to wait for some initial signs of strength that may (be) confirmed with a close above the psychological hurdle of 16k levels,” he added.
The Bank Nifty opened at 33,256 and traded in the range of 33,821.65-33,001.75. It closed 1.44 percent higher at 33,597.60
A long build-up was seen in Balkrishna Industries, Eicher Motors and Hindustan Aeronautics, while a short build-up was seen in Honeywell Automation, Metropolis Healthcare and Aditya Birla Capital.
Among individual stocks, a volume spike of more than 200 percent was seen in Dr Lal Path Labs, ACC and Metropolis Healthcare.
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