The Nifty's sharp rebound after a five-session losing streak is more than just a bout of short covering, but whether the rally gathers further momentum now depends on one crucial level, according to Anand James, Chief Market Strategist at Geojit Investments.
James believes derivatives positioning and options data suggest traders are shifting their bullish expectations higher, with the market attempting to establish a new support base around 24,400-24,500. A decisive move above 24,800, he says, could pave the way for the benchmark index to extend its rally towards the 25,000 mark, provided banking stocks also join the advance.
