Nifty ended Friday’s session with a gain of 482 points or 5.83% and broke the four day’s continuous selloff. The index managed to end above 8700 level amid buying seen in most sectors and made a morning star pattern in the daily chart which suggests short term reversal in the index.

All the sectoral indices ended in the green with FMCG and IT index rose more than 8%, followed by the, Auto, Energy, Infra, Metal, and Pharma. NSE Smallcap and Midcap indices closed with 4% gains.

Nifty Hourly

In the Hourly chart, Nifty witnessed further strength above hourly resistance of 8500-8550 zone and later took support from the above level.

Probable resistance in the hourly chart comes at 9050 at 50 Hourly Moving average and probable support comes at 8450 at 20 Hourly SMA. Technical parameters including RSI, Stochastic and CCI looks neutral as of now.

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Nifty Hourly chart

Nifty Daily

The index has formed Bullish Morning star pattern in the daily chart which suggests short term reversal and likely to see further strength above swing high of 8900 level. Moreover, RSI also shows positive divergence which suggests further strength as of now.

Probable resistance in the near term comes at 8950-9000 as of now; sustainable break above 9130 may lead to further strength.

Nifty Daily Chart

Nifty Monthly

The index bounced from 100 monthly Moving Average channel and the bounce on Thursday’s session came exactly from the lower band of the channel. This was the same channel from where the index saw bounce back in the year 2009 after Financial crisis.

Presently the index is trading right at monthly support of 8750-9000 zone and monthly close above which lead to further strength in the near term.