The market ended higher in a volatile day of trade with the Sensex ending 131.52 points, or 0.38 per cent, higher to settle at 34,865.10. The index ro­se 275.07 points, or 0.79 per cent, at the day's high of 35,008.65. And fell 173.60 points, or 0.50 per cent, at the day's low of 34,559.98. The Nifty 50 Index rose 40 points, or 0.38 per cent, to settle at 10,512.50. The BSE Mid-cap Index rose 0.62 per cent, while the Small-cap Index rose 1.37 per cent.

Technical view

Mustafa Nadeem, CEO, Epic Research, said: “Dragonfly doji signals indecision on the Nifty as the Index struggled to breach its 10 day SMA. A dragonfly doji is indecision as it normally doesn't perform well as a reversal or continuation. It happens usually when the open, high, and close of the market are at an extreme point on the upside, while the low is far away from the other three components. A long lower shadow, hence, on the da­ily chart shows the buying was seen from lower levels to end the market on higher levels. The daily 10 SMA is at 10,511 and the Nifty closed just on the edge of it.

“We expect the Nifty to carry the momentum it has on a lower scale and expands the trend on the upside to 10,600-10,620 in a very short-ter­m. The pressure remains on the upside as derivatives data suggest writing on higher strikes such as 10,600. We continue to remain cautious and only change the stan­ce if closing is seen above 10,650. Till then, bears may utili­se the favourable risk-reward th­ey have going with the medium-term bearish trend.

Market view

Jay Thakkar, CMT, head of technical and derivatives research, AVP Equity Research, Anand Rathi Shares and Stock Brokers, said: “The Nifty closed well in the positive territory in the last trading session after having closed in the positive territory in the last trading week. With a positive we­ekly close last week a retracement of the entire fall is expected which will take the Index to 10,700 levels in the short term. On the lower side, 10,300 is a short term support. So, we recommend buying in the Nifty for the short term. Sensex too closed in the positive territory in the last trading and it seems to have for­med a bullish morning star reversal candlestick pattern on the daily cha­rts. The support on the lo­wer side is pegged at 34, 500 levels, whereas the target comes to 35,250 le­vels on immediate basis.”

—Ashwin Punnen