NEW DELHI: Nifty50 climbed over 700 points on Tuesday and ended near the 7,800 mark.

In the process, the index formed a large bullish candle on the daily chart.

Analysts said the index needs to cross the 8,360 level for an initial target above the 9,040 level. During the session, the index saw a breakout above its Inverted Head - Shoulders formation on the daily line chart, which is an encouraging sign. "Moreover, the index closed above its 13-day EMA at 8,657, which acted as a resistance point in its recent rise towards the 9,038 level.

Hence, sustaining above the 8,360 holds key," said Mazhar Mohammad of Chartviewindia.in. For the day, the index settled at 8,792, up 708 points or 8.76 per cent. On the hourly chart, the index has crossed the falling trendline, retested it and took a leap towards the 8,800 level. “It is now a stone's throw away from the resistance zone between 8,900 and 9,000 levels, where the index stumbled a couple of times in the recent past,” said Gaurav Ratnaparkhi of Sharekhan. “These levels need to be monitored closely.

Unless the index takes out these hurdles on a closing basis, it can resume the bigger downtrend,” he said. Rohit Singre of LKP Securities said if the index manages to sustain above the 9,000 level, it may see a change in momentum to ‘neutral’ from ‘negative’ rating.

“Nifty’s failure to hold above this level may drag the index towards the immediate support in the 8,550-8,400 range,” Singre said.