F&O Talk | Pullback rally to 100 DEMA likely in Nifty, Bulls may eye for 24,550 level: Sudeep Shah of SBI Securities
The benchmark Nifty50 climbed to 23,907.25, while the Sensex jumped to 79,117, marking a strong reversal from recent losses.
Analyst Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research, at SBI Securities interacted with ET Markets, sharing his outlook on the Indian markets. Following are the edited excerpts from his chat:
Nifty is above its 200 DEMA now. What is the short-term outlook on the index?
From its all-time high of 26277, the benchmark index Nifty had tumbled over 11% in just 36 trading sessions, experiencing a swift and sharp correction. However, Thursday brought a glimmer of hope as the index found solid support near the 61.8% Fibonacci retracement level of its prior rally (21281–26277) and bounced back smartly.
In technical parlance, the 61.8 percent Fibonacci retracement level is known as the «golden ratio,» which often acts as a pivotal turning point, sparking optimism for a potential trend reversal. Along with this pullback rally, the index has surged above its 200-day EMA level. Also, the daily RSI has given a bullish crossover. Now, the million-dollar question is it just a retracement or a reversal? We feel the pullback rally is likely to continue for the next couple of trading sessions.
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