The Nifty closed below its crucial support level of 9,650 on Wednesday but the way bulls pulled the index from its intraday low of 9,608, a breakout is in the offing. It is a bullish reversal pattern and often implies that market may be nearing a bottom. However, traders should not make decisions based on just one candlestick pattern and wait for further confirmation as Thursday's price action will be crucial.
The Nifty closed 19.90 points lower or 0.21 percent at 9,633.60. According to Pivot charts, the key support level for Nifty is placed at 9,611, followed by 9,589. If the index starts to move higher then key resistance levels to watch out are 9,653, followed by 9,672.
Nifty Bank closed 10 points higher or 0.05 percent at 23,708 on Wednesday. Important Pivot level which will act as crucial support for the index is placed at 23,625 followed by 23,542. On the upside, the key resistance level is 23,776 followed by 23,843.
According to Technical Analyst Prakash Gaba of prakashgaba.com, technically the next logical technical target would be 9724 as long as 9620 holds. The Nifty opened with a bear gap and traded volatile to close above the crucial support of 9620. Technically, 9620-9560 still is a crucial support to work with. The crucial support for Nifty is at 9620-9560 and the resistance is at 9700-9724. On the other hand, Bank Nifty has support at 23530 while the Index has resistance at 23880.
Below are some of Prakash Gaba's stock picks:
Delta Corp: Indicator Buy | Rating: Buy | Target: Rs 171, stop loss: Rs 164
Omaxe: Indicator Buy | Rating: Buy | Target: Rs 208, stop loss: Rs 204
PC Jeweller: Indicator Buy | Rating: Buy | Target: Rs 540, stop loss: Rs 518
Wipro: Base Formation | Rating: Buy | Target: Rs 262, stop loss: Rs 254
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