NEW DELHI: Nifty50 on Wednesday recovered nearly 100 points from the day’s low, as the bulls went ahead to buy the dips. Though the index settled lower, it ended up forming a bullish candle on the daily chart.

Analysts believe the 12,150-12,190 range may prove short-term resistance for the index while support is seen in the 11,900-930 range.

There was no follow-through selloff after the gap-down opening and the bulls rushed in to buy the dips, as the index approached the daily lower Bollinger Band, said Gaurav Ratnaparkhi of Sharekhan.

“On the downside, the 11,900-11,850 range is likely to act as a cushion for Nifty with major support at the December low of 11,832. The downside looks limited as long as the bulls manage to hold on to the support. On the flip side, the 12,100-12,150 range will be a key resistance, which will keep any bounce in check for the near term,” he said.

The index closed the day at 12,025, down 27.60 points or 0.23 per cent.

The low of 11,930 happens to be the 78.6 per cent Fibonacci retracement level, indicating significant support area, said Aditya Agarwala of YES Securities.

“The RSI has formed a positive divergence after reaching the oversold zone of 30, which suggests short-covering rallies are on the cards in the coming sessions,” Agarwala said.

Mazhar Mohammad of said the index needs to sustain above its 50-day EMA at 11,982, which it is defending for last three sessions.

“If this happens, the possibility of a short-term trend turning sideways with a positive bias will remain higher. In such a scenario, Nifty may stay in the 12,190–11,920 range,” he said.

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