The Nifty ended the week on a strong note to close 272 points, or 1.57 percent, higher on March 3 in the biggest single-day gain since November 11, 2022.
The index formed a strong bullish candlestick on the daily charts, making higher highs and higher lows.
The Nifty also closed above its 200-day exponential moving average (EMA) of 17,582 as well as above 5 and 9-day EMA.
Going ahead, 17,600-17,650 is expected to be the crucial resistance area, as above it, the Nifty can go to 17,800-18,000, experts said. Support is at 17,250-17,300.
“On the daily chart, the index has given a consolidation breakout, suggesting a rise in optimism. The momentum oscillator RSI (relative strength index) is in bullish crossover on the daily timeframe,” Rupak De, Senior Technical Analyst, LKP Securities said.
The Nifty may move higher once it goes past 17,650. Resistance is visible at 17,800, whereas on the lower end, support is at 17,470, he said.
On the weekly Option front, the maximum Call open interest was at 18,000 strike, which is likely to be next key resistance for the Nifty, followed by 17,900 strike and 17,600 strike, with Call writing at 17,900 strike then 17,700 and 17,800 strikes.
On the Put side, the maximum open interest was at 17,500 strike, which is expected to be the near-term support for the index, followed by 17,400 and 17,000 strikes, with writing at 17,500 strike, then 17,600 strike.
For the Nifty, the expected near-term trading range is 17,300-17,800.
“The Nifty 17,500 PE strike finally reduced its open interest for people who had shorted it in the last few days indicating this upmove. But it still managed to add huge fresh OI on Friday, as new players joined in making this strike with the highest open interest for this week’s expiry,” Rahul Ghose, Founder & CEO, Hedged, said.
The Put and Call writers are now evenly poised in a wait-and-watch mode and news flow developing out of the Western markets over the weekend, he said.
The Bank Nifty decisively cleared above 41,000, which was the resistance area. The index climbed 861 points, or 2.13 percent, to close at 41,251 and formed a long bullish candle on the daily charts with above-average volumes.
“The momentum indicator has given a positive crossover on the daily chart which confirms the buy signal. The index is likely to touch the level of 42,000, where fresh Call writing has been observed,” Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities said.
The volatility also dropped significantly, with fear index India VIX falling 6.09 percent to 12.18 levels, giving comfort to bulls.