A strong recovery from the lower level indicates some relief could be seen in the markets after a decline of 1,750 points during the last couple of weeks.
Nifty opened positive and rallied over 220 points on Monday and was headed towards 10,250. It has also negated the formation of lower high and lower lows on the daily chart and has taken support at the psychological 10,000 mark, said Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Securities.
A strong recovery from the lower level indicates some relief could be seen in the markets after a decline of 1,750 points during the last couple of weeks, Taparia said.
We have seen a positive divergence in the price on the RSI, which indicates that the market is in deep oversold territory. Given the way it is respecting its 52-week low of 9,952, some bounce could be seen in the market, he said.
Till it remains above 10,138, the rebound could continue towards 10,330-10,450 zone, he said.Similarly, Bank Nifty respected 24,250-24,300 zone and formed a double bottom formation. Holding above 24,500 can take it to the 25,250-25,500 zone, said Taparia.