The rally in last hour of trade helped the market close higher for tenth consecutive session on October 14, driven by banking & financials anticipating a favourable outcome in the interest waiver case.
The BSE Sensex jumped 169.23 points to 40,794.74, while the Nifty 50 rose 36.50 points to 11,971 and formed bullish candle on the daily charts.
"We observe a formation of small positive candle with long lower shadow, which indicates a sharp intraday upside bounce, after a steep decline in the early part of Wednesday. This market could be a cheering factor for bulls to make a comeback, after a short pause in the market. But, the overall market breadth continued with weak trend and broad market indices like mid and small cap segments have failed to show any reasonable upmove," Nagaraj Shetti, technical research analyst at HDFC Securities told Moneycontrol.
"The uptrend of the last couple of weeks remains intact and Wednesday's sharp upside bounce could be another evidence of strength of upside momentum. The whole chart pattern as per daily timeframe could be considered as an uptrend continuation and Nifty is expected to surpass the 12,000 mark soon," he said.