Nifty recovered from the day’s lows on Monday to end with minor gains lifted by buying trends in IT and pharma stocks though selling in banks, auto and metals dragged the markets. The index witnessed a sharp recovery during the day after forming a harmonic pattern on the lower timeframe charts.
Rupak De, Senior Technical Analyst at LKP Securities said the index is now facing resistance near the 61.8% Fibonacci retracement level of the previous decline, which is placed around 23,650. "A decisive move above 23,650 could trigger a short-term rally towards 24,000 and higher levels. On the downside, immediate support is placed near 23,400. Stock-specific buying interest continues to remain visible, indicating selective strength in the broader market. However, sustained elevation in India VIX above 18.50 is likely to keep optimism in check and may continue to induce volatility in the near term" De said.
