Nifty reclaimed the psychologically important 22,500-mark on October 9 due to various reasons, including buying in IT shares, value buying, easing crude prices.
The benchmark Nifty 50 and the BSE Sensex saw a sharp selloff in the previous session that led them to close at an 18-month and 32-month low, respectively. At 12:10 pm on October 9, Nifty was trading 253.55 points or 1.14% higher at 22,485.35.
Is today's bounce a mere technical one or will it sustain in short-term? Here's what analysts said
"Going ahead, a follow through weakness will signal extension of decline towards 22,000 and CY25 low of 21,750. Index while holding above yesterday's panic low of 22,180 will lead to some consolidation in the range of 22,180-22,600. On the higher side yesterday high of 22,600 will act as immediate resistance," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
"Despite the expected gap-up, the overall market structure remains cautious, and the recovery needs to sustain above resistance levels to indicate a meaningful improvement in momentum. Until then, a sell-on-rise approach remains preferable, with rallies likely to face selling pressure near resistance.