Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed healthy short covering towards the closing hours that helped key indices to reverse the 3-day losing streak. With the US FOMC minutes out of the way now, the market is more or less getting prepared for the likely rate hikes, and hence we saw strong buying on the F&O expiry day.
While we may see bouts of selling going ahead due to other negative factors like higher inflation, continuous FII selling, & the Russia-Ukraine conflict, relief rallies will still be seen amidst volatility.
On daily charts, the Nifty has formed a long leg Hammer formation which supports further uptrend from the current levels.
For the trend following traders, 16050-16000 would act as the key support zone. Trading above the same, the index could rally up to 16300-16375. On the flip side, below 16000, uptrends would be vulnerable. Below which, bulls may prefer to exit out from the trading long positions and index could retest the level of 15900-15850.