1. Technically, support levels have worked beautifully yesterday. Yday's price action is something to take note of. This is because how the market deals with support levels says a lot of the underlying trend. With yesterday’s move the signal is quite clear that the bulls mean business and are buying the dip. Now it seems that for the time being the bearish momentum could have been arrested.
2. On the upside, 17590 and 17725 are the resistance levels to work with.
3. Nifty could trade in the 17350-17725 zone for the next few days and consolidate.
4. We still cant say with confidence that the pullback is done with. Hence would like to watch the action for a day or two more.
5. The screen tells us that the market would keep finding support at lower levels.
Summary View: The turnaround yesterday looked excellent on the screen and charts. Till 17350 is safe the chances of a further rally remains.