Bulls made a remarkable comeback on the Street on Friday. The market reversed half of the previous day's massive loss and clocked 2.5 percent gains on February 25 as the buying was seen across sectors.
The BSE Sensex surged 1,329 points to 55,858, while the Nifty50 jumped 410 points to 16,658 and formed bullish candle on the daily charts, but the index needs to surpass and stay above 200-day exponential moving average for few days to gain strength.
"There seems to be multiple hurdles in the zone of 16,800 – 17,065 levels which not only includes bearish gap zone but also 200-day exponential moving average whose value is placed around 16,720 levels," says Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.
He feels for the next couple of sessions, Nifty needs to sustain above 16,478 levels to develop sideways to positive bias. "In that scenario initially it can head into the zone of 16,800 – 16,850."