Nifty touched an intraday high of 9,390 level on April 20 which is 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.

While Nifty retraced 38.2 percent, Dow Jones had already retraced more than 50 percent of its entire fall seen from January high to March low. A 50 percent retracement level for Nifty comes to 9,970.

RSI oscillator has been forming positive divergence for the Nifty on the daily chart. On April 7, Nifty closed above its 10-day EMA resistance level and since then it has never fallen below that. The 10-day EMA is currently placed at 8,957 which is going to act as a support.

On the derivatives front, we have seen Put writing at 9,000. Moreover, Nifty 9,000 put level consists of the highest OI amongst the Nifty weekly Expiry (23-April) and second highest in the monthly Expiry (30-April), indicating 8,950-9,000 level to act as strong support.

Immediate resistance for Nifty is seen at 9,390. A sustained trade above 9,390 could push Nifty towards the target of 9,800-9,900 levels.