For the day, the index rose 31.60 points, or 0.31 per cent, to close at 10,348, after hitting sub-10,200 level earlier in the day.
The Nifty50 is on the verge of seeing a bounce from the lows, but the sustainability of the upmove is doubtful, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities
He said the upside area in the 10,500-550 zone is going to be a strong overhead resistance for the index. Nifty50 has completed an impulse on the hourly chart. “We can expect retracement of the same going forward. Nevertheless, the impulse structure looks incomplete on the way down on the daily chart. Thus, any bounce is likely to be a shallow one,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
During the day, the index took support at its rising support trend line, which was formed by connecting the major swing lows of 6,825, 7,893 and 10,200 levels. It turned back from its lower band of the rising channel on the weekly scale, said Chandan Taparia of Motilal Oswal Securities.
“The index needs to hold above 10,300 to extend its bounce towards 10,420 and then 10,500 and 10,650 levels. On the downside, the 10,200 level may act as an immediate support,” he said.
Mazhar Mohammad of Chartviewindia.in, meanwhile, said the intraday recovery appeared to be on the strength of a few largecap stocks, which attracted value buying at lower levels.
“Going forward, pullbacks shall remain vulnerable to unexpected selling pressure, as multiple hurdles are placed on the way to 11,000 level. In case this pullback materialises, then the first hurdle shall be at 10,547 level as the market witnessed gap-down opening in Fridays session,” Mohammad said.
He advised traders to stay away from the market till some signs of stability get visible.