Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets finally heaved a sigh of relief and logged steady gains after early optimism in key European indices prompted selective buying in IT, finance and healthcare stocks. However, the bearish undertone can be seen from the fact that heavy selling continued in metals, oil & gas and capital goods stocks as worries of growth slowdown resulted in a fall in these stocks.
Technically, on intraday charts, the Nifty has formed a double bottom formation which is broadly positive for the near term. The index has also formed a Hammer reversal formation on daily charts, indicating strong possibility of a fresh pullback rally from the current levels.
For day traders, 15250 would be the sacrosanct support zone. And if the index succeeds to trade above the same, then the pullback rally is likely to continue in the near future and could move up to 15500-15600 levels. On the flip side, below 15250, the uptrend would be vulnerable and below the same, the index could slip till 15180-15100.