From the bottom of 7,511 registered on March 24, 2020, Nifty has seen a pullback of more than 21 percent, which is lower as compared to developed markets like Europe and the US.

Recently, Nifty has managed to surpass the resistance of its 20-days exponential moving average (EMA), which is currently placed at 9,005.

Nifty has also managed to register a higher top above 9,038, preceded by a higher bottom at 8,055 on the daily charts.

By surpassing the resistance of 8,600 in the previous week, Nifty also confirmed the bullish inverse head and shoulder pattern breakout on the daily line charts.

The projected target of this pattern comes at 9,700-9,800 levels for Nifty. However, before that, the level of 9,390 could act as a resistance, which happens to be the 38.2 percent Fibonacci retracement level of the entire swing seen from an all-time high at 12,430 to March low at 7,511.

A sustained trade above 9,390 could push Nifty towards the target of 9,700-9,800.