Trade setup for Thursday: Top 14 things to know before Opening Bell

The market has broken a five-day losing streak and rebounded with one percent gains on April 20, backed by buying in beaten-down HDFC twins and technology stocks. Cement and FMCG stocks and index heavyweight Reliance Industries also supported the market.

The BSE Sensex rallied 574 points to 57,037, while the Nifty50 jumped 178 points to 17,136 and formed a Bullish Harami candlestick pattern on the daily charts, indicating a reversal of the trend.

“The crucial lower area of 17,000-16,800 levels seems to be acting as an important value area. The current chart pattern indicates that the Nifty seems to have halted its decline around this support and could bounce back,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

Previously, the upside and downside movement from this area has gathered sharp momentum on either side. Hence, a sustainable move above 17,300 levels is likely to bring bulls back into action that could possibly pull the Nifty towards further upside, he said. “Immediate support is placed at 17,000 levels.”

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