The Nifty bounced back sharply and retained the momentum throughout the session on January 31, as there was short covering and value buying ahead of the Union Budget to be presented on February 1.
The index formed a bullish candle on the daily charts as the closing was higher than the opening level, indicating positive momentum. If the market sustains the trend, a rally towards 17,600 can't be ruled out in the near term, experts said.
The volatility, however, increased and remained above the 20-mark, indicating wild swing on the Budget Day. India VIX, which measures the expected volatility in the market, rose by 6.05 percent to 21.95 levels.
"Technically speaking, today's move should be read as positive for the bulls as it refused to follow the intraday weakness witnessed in the last Friday's session. Hence, ideally, if it sustains above 17,264 levels in the next session, this counter should head towards 17,600 levels," said Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisors at Chartviewindia.