Nifty Bounces Back: Eyes 26,000 Levels | Daily Market Quote by HSL

Nifty witnessed smart recovery after negative opening on Friday and closed the day higher by 50 points. Nifty opened on a weak note, slipped into further weakness in the early part of the session. However, there was a volatility of larger swing up and down in the mid part and Nifty finally moved up towards the end and closed higher.

A reasonable bull candle was formed on the daily chart with long lower shadow. Technically, this market action indicates a formation of bullish hammer type candle pattern (not a classical one). Technically, this market formation after a downward correction indicates possible reversal of trend on the upside.

The huge opening upside gap of 3rd Feb is still partially filled after four sessions its formation. If this gap remains partially filled for the next couple of sessions, then that could be considered as a ‘bullish runaway gap’, which is more often formed in the middle of uptrend. Hence, a sustainable move above 25800 could pull Nifty towards 26000 and next 26350 levels in the near term. Immediate support is placed at 25500.