According to pivot charts, the key support levels for the Nifty are placed at 17,104.87, followed by 16,942.93. If the index moves up, the key resistance levels to watch out for are 17,367.57 and 17,468.34.
The BSE Sensex on February 8 ended 187.39 points higher at 57,808.58, while the Nifty50 settled at at 17,266.80, up 53.20 points. The BSE Sensex on February 8 ended 187.39 points higher at 57,808.58, while the Nifty50 settled at at 17,266.80, up 53.20 points.
Rebound in the second half of the session helped the stock market snap a three-day losing streak on February 8. Declining oil prices from seven-year high and short covering were the major factors behind the uptrend. Select Metal, Pharma, Auto, Banking & Financial stocks led the support.
The BSE Sensex ended 187.39 points higher at 57,808.58, while the Nifty50 settled at at 17,266.80, up 53.20 points and formed a small bearish candle which resembles Hammer kind of pattern formation on the daily charts.
"A small body of negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a formation of bullish Hammer. A formation of such pattern after a reasonable weakness signal an upside bounce in the market post confirmation of reversal pattern," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Shetti feels three sessions of sharp decline seems to have halted and the overall chart indicates another minor upside bounce from here or from the lows of around 17,000 mark. "The expected upside bounce could be short lived and one may expect another lower top formation below 17,800 levels." On the broader market front, the Nifty Midcap 100 and Smallcap 100 indices underperformed equity benchmarks, falling 0.7 percent and 1.72 percent, respectively.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 17,104.87, followed by 16,942.93. If the index moves up, the key resistance levels to watch out for are 17,367.57 and 17,468.34.
Nifty Bank The Nifty Bank rose 33 points to 38,028.45 on February 8. The important pivot level, which will act as crucial support for the index, is placed at […]