NEW DELHI: Nifty on Wednesday advanced and formed a bullish candle on the daily chart.

This was a slight relief for the index, which formed back-to-back bearish candles in last three sessions.

But analysts were not enthused. The daily chart suggests the index has support near the lower end of the Wedge Pattern and bounced therefrom. On the hourly chart, the index has retraced 61.8 per cent of the recent fall, which is near 9,200 level, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan. “Thus, Wednesday’s bounce was descent enough to give way to the next leg down.

The 9,230 and 9,300 levels will be the subsequent hurdles on the upside.

On the other hand, the 8,950-8,900 range now becomes a crucial support area for Nifty in the near term," Ratnaparkhi said. For the day, the index closed at 9,187, up 205.85 points or 2.29 per cent. Lack of follow through to the previous session’s breakdown is hinting at one more attempt by the bulls to clear its logical resistance at the 9,390 level.

For the time being, traders should remain neutral for a day or two, said Mazhar Mohammad of Chartviewindia.in. “Weakness is expected on any breach of the 8,900 level with an initial target of 8,450.

On the upside, once the index sees a decisive close above 9,400, a fresh leg of upswing will unfold with targets placed around the 9,950 level, which is the 50 per cent retracement of entire fall from 12,430 to 7,511 levels,” Mohammad said. "Nifty’s immediate support is coming near 9,075 level, followed by 9,000 level while resistance comes near the 9,280-9,400 zone," said Rohit Singre, Senior Technical Analyst at LKP Securities.