Markets recover smartly, end near day's high. Here's how experts see trading on Friday
Strong gains in ICICI Bank, HDFC, Kotak Mahindra Bank, State Bank of India and Axis Bank helped the benchmarks and the Nifty Bank climb higher
Shrikant Chouhan, EVP, Technical Research, Kotak Securities
The Nifty has formed a bullish piercing pattern by closing above the median of the previous day, which was at 14,367 levels that can be found at the end of a downtrend. Based on it, our strategy should be to create long positions with between 14,350and 14,300 levels.
On the higher side, we would see the levels of 14,530 and 14,580. A close above the levels of 14,580 would validate the formation of bullish reversal and in that case, the Nifty/Sensex may rally to even 14850 levels where it has the biggest hurdle.
On the other side, 14,250 and 14,150 would be major supports. Investors must keep a final stop loss at 14150/47200 for creating any long position. Today the market breadth was healthy and it was mainly due to renewed buying interest in Financials. The focus should be on Financials and Metal stocks.
Manish Shah, Founder, Niftytriggers.com
The 14,300-14,250 is the support for the Nifty and Nifty broke below this and the market recovered and closed above this support zone. Nifty also hit the rising trendline coming up from the lows and the pattern formed at this rising trendline. This is a case of a failed breakout and one wonders if the decline from the high of February 16 2021 is coming to an end.
Volatility in the market has seen a decline. If Nifty moves above the resistance at 14,550-14,560 expect it to move higher towards next week is going to be the expiry week for the month of April and within the next 2-3 sessions we can expect Nifty to hit 14650-14680.
If Nifty moves beyond 14,700 expect more upsides towards 14,900. Support for Nifty is at 14,200 and probabilities favour Nifty rising to 14,680 and beyond in going into the expiry week.