MUMBAI: The markets, which exhibited resilience on Friday, recovering from the day’s low even as Reliance tanked 7%, could attempt to continue its upward bounce underway since last week.
Weekly options’ build-up suggest resistance at 15900, which if broken could witness Nifty testing 16000-16200 levels in the coming week.
Key support is at 15500. Levels for Sensex roughly translate into 53,400, 53760 and 54432 as resistances and 52080 as a key support in the coming week.
On Friday, Nifty made a low of 15511.05, but recovered on domestic buying, even as index heavyweight Reliance cracked 7% on news of the export tax on refined products.
With Reliance accounting for almost 14% weight on the index, Nifty and Sensex’s recovery from intraday lows is being read by analysts that the market is not yet in a mood to relent to bearish pressure, for now.
“Friday’s recovery despite RIL’s sharp correction signals a continuation of the pullback rally that got underway last week toward 16200,” said Siddarth Bhamre, research head, Religare Broking.
Rajesh Palviya, technical head at Axis Securities, expects a maximum pullback through 16100 at which level he expects significant selling.
“We are in pullback mode from lows, from an oversold zone so we might see an extension of the bounce to a max of 16100,” Palviya said.
Friday’s recovery was led by the Bajaj twins, HDFC, HUL, Wipro and Infy, which countered the fall in RIL.