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Based on the OI percentage, 85 stocks were on the short-covering list on January 9, including Polycab India, Tech Mahindra, Coforge, Reliance Industries, and Persistent Systems

January 10, 2023 / 08:48 AM IST

The market snapped a three-day losing streak and clocked more than one percent gain on January 9 as all sectors participated in the recovery. The short-covering in beaten-down quality stocks and the uptrend in global peers supported the market.

The BSE Sensex rallied 847 points to 60,747, while the Nifty50 rose 242 points to 18,101 and formed a bullish candle on the daily charts, making higher high higher low formation. The index has taken strong support at 17,750 as well as a psychological 18,000 level.

"A long bull candle was formed on the daily chart, which indicates an upside bounce in the market after a decline of a few sessions. After the formation of lower tops and bottoms on the daily chart, the Nifty seems to have formed a higher bottom on Friday at 17,795 levels. But this needs to be confirmed with follow-through upmove in the subsequent sessions," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

He feels the present upside bounce could be a cheering factor for the bulls to make a comeback.