Technical Analyst Anil Manghnani of Modern Shares and Stock Broking told CNBC-TV18 that if the market can cross above 16,700, it would get it out of the bear phase that it is stuck in.

Excerpts from CNBC-TV18’s exclusive interview with Anil Manghnani:

Q: How do you read today’s rally? Is it looking like strength or is it like a big pullback in a bear phase?

A: Initially, atleast for the time being, since it is a bear phase we will have to look at it as a bear market rally. But I will give it some time for one reason. 16,000 and 4,800 were crucial levels that we crossed. But now the next key is the 50-week because that is what I define as the bear phase. We broke the 50-week about 3 weeks back and that is why we are struggling.

For us, to get out of this rut that we have caused for ourselves, 4,944 is the 50-week on the Nifty. Sensex is a little higher at about 16,700 levels. That will be the key for this market. If we can cross above 16,700, that will get us out of this bear phase that we are stuck in right now.

Q:  What kind of closing level would you be working with, to get the sense that the market might have more on the upside?

A; I think 4,800 and 16,000 is the major technical resistance this morning. Since we are trading above it, any close above it gives us a chance towards working at the next level, which is the 50-week moving average.