After showing a sustainable upside bounce on Wednesday, Nifty witnessed sharp follow-through upmove on Thursday and closed the day with hefty gains of 234 points. After opening on a positive note, the market shifted in to a sustainable upside for the whole session. Intraday dips in between have been bought into and the Nifty closed near the highs.
A long bull candle was formed on the daily chart which indicate a sharp pullback rally in the market. Presently, Nifty has moved just above the crucial overhead resistance of 17350 levels (resistance as per the concept of change in polarity). This is positive indication and displays a strength of bulls in a down trend.
A sustainable upmove above 17400 levels is likely to pull Nifty towards another important hurdle of 17600 levels in the few sessions. As long as Nifty stays below 17600 levels, the present negative chart pattern as per smaller timeframe will be intact and that could alive the possibility of the market reversing down from the highs.
Conclusion: Thursday's upmove seems to have strengthened the upside bounce which started from the lows of 16782. A decisive upside breakout of the hurdle of 17400-17600 levels could only change the short term negative sentiment of the market. Any turn down from near the resistance band could bring bears into action again. Immediate support is placed around 17300-17250 levels.