The Nifty50 recouped intraday losses to close above 17,600 levels on Monday, suggesting that bulls are not ready to give up. The S&P BSE Sensex rallied more than 300 points to close above 59,000.

The Nifty50 formed a Hammer-like candle on the daily charts, a bullish sign provided we see a follow-through in Tuesday’s session as well. A Hammer is formed after a price decline. It has a small real body and a long lower shadow. The Nifty50 opened higher, but bears pushed the index towards an intraday low of 17,429 before reversing the trend.

The index recouped losses to close at 17,622, up 91 points from its previous close of 17,530 on Monday. The Nifty50 index opened flat near 17,540 zones and then drifted towards 17,429 marks in the initial hour of the day. It took strong support at lower zones and witnessed a good recovery of more than 200-points by heading towards a key hurdle at 17,667 mark.

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“Nifty formed a Bullish Hammer sort of candle on a daily scale, and bulls are getting some comfort after the declines of last two sessions,” Chandan , Derivative & Technical Analyst, Fin Services, said.

“Now, it has to hold above 17,550 zones, for an up move towards 17,777 and 17,850 zones whereas support exists at 17,442 and 17,350 zones,” he said.

India VIX was up by 0.61 per cent from 19.82 to 19.94 levels. Volatility spiked to 21.20 zones at the start of the session but then cooled off to highs which paved some way for the bulls in the market.

On the options front, the maximum Call OI is at 18,000, which is likely to act as stiff resistance, followed by 18,500 strikes.

The maximum Put OI is placed at 17,500, likely to act as strong support, followed by 17,000 strikes.

“Options data suggest a broader trading range between 17,000 to 18,200 zones while an immediate range between 17,300 to 17,800 zones,” added Taparia.

The index witnessing buying interest at lower levels is a positive sign. However, things could turn volatile as we approach the outcome of the US Federal Reserve meeting on Wednesday.

Indian markets will react to the outcome on Thursday. The important support for the index is placed at 17,400-17,500 levels, while on the upside, 17,700 followed by 18,000 will act as a stiff resistance.

The Federal Reserve’s Federal Open Market Committee (FOMC) is scheduled between September 20-21.

“Nifty remained range-bound as investors await the FOMC outcome. On the lower end, the index found support above 17,400, whereas bears protected the 17,700 mark,” Rupak De, Senior Technical Analyst at

, said.

“The trend is likely to remain sideward over the near term. Support is placed at 17,350-17,400, and a fall below 17,350 may trigger a correction towards 17,000. On the higher end, 17700 may act as a crucial resistance. A decisive move above 17,700 may induce a rally towards 17,900/18,100,” he said.

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