The Nifty, which had fallen below its 100-day moving average—the average closing price over the last 100 days—of 11,142.51, rebounded after rallying in the last two sessions. It’s now 60 points shy of the 50-day moving average.
“The Nifty witnessed a consolidation breakout in a smaller time frame,” Hadrien Mendonca, senior technical analyst at IIFL, told BloombergQuint over the phone. He expects an uptick of 100-150 points in the 50-share gauge from the current levels. The downside, if any, will be limited, he added.
The fast-moving consumer goods stocks look impressive in the near term, Mendonca said.