Closing Bell: Nifty ends around 17,550, Sensex gains 257 pts led by auto, metals; IT drags

Markets witnessed heightened volatility as Sensex gyrated more than 1,000 pts intra-day before late buying in banking, auto, metal & realty stocks aided recovery.

Markets may witness bouts of volatility in coming days as global factors will continue to keep investors on tenterhooks. Technically, after a gap down opening the Nifty took support near the 20-day SMA and bounced back sharply.
It has also formed a bullish candle on daily charts which is broadly positive. However, the short term formation is still in the negative side.
The intraday set up suggests that the pullback rally is likely to continue if the index trades above 17500. Above the same, it could hit the level of 17700-17750. On the flip side, below 17500 a fresh round of selling is possible and below the same, the index could slip till 17350-17300.