The Nifty climbed above 17,300 to close at its highest level since December 13, up 2 percent in the week ended December 31, forming a bullish candle on the weekly as well as the daily charts.
The rally was broad-based and the index concluded the year with 24 percent gains. Experts expect the rally to continue in the coming days and the Nifty at 17,400-17,500. If the index stabilises around these levels, a sharp rally can't be ruled out.
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"As a conservative trader, one can wait for a sustainable close above 17,400, which is the higher end of the ‘Downward Sloping Channel' on the daily chart. But the way individual stocks are behaving, it is likely to happen in the coming session only,” said Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One. After this, the immediate levels to watch out for would be 17,550–17,700, he said.
On the flip side, the base shifted to 17,000–16,800 before which 17,150 was considered the key support.