Benchmark index Nifty rose 1.6% on October 15 to reach 22,949.95, nearing the 23,000-mark. Analysts said the market needs to reclaim 23,100 levels to signal a pause in the recent decline. While many shares fell, traders now watch key support levels closely to see if the current pullback will continue higher.

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Benchmark index Nifty rose 1.6% on October 15 to be within touching distance of the psychologically important 23,000-mark.

At 12:05 pm, the Sensex was up 1,144.44 points or 1.57% at 73,926.33, and the Nifty was up 327.25 points or 1.45% at 22,949.95. About 1,545 shares advanced, 2,221 shares declined, and 180 shares were unchanged.

Will markets go higher in short term or will they take a sharp U-turn? Here's what analysts said.

"In the coming sessions a move above last week high of 22,776 will open further pullback towards 23,000-23,100 levels. Failure to move above 22,776 will signal consolidation in the range of 22,300-22,775.

"On the higher side, index needs to start forming higher high and higher low on a sustained basis in the weekly chart and reclaim 23,100 levels being the recent breakdown area to signal a pause in the last 2 months sharp decline," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

"Technically, after a slow start, the market encountered resistance near 22,750/73200 and reversed sharply. It also formed a bearish candle on the daily chart. We believe 22,500/72500 and 22,450/72300 remain strong support levels for the market. As long as the market trades above these levels, a pullback is likely to continue.

"On the upside, 22,750–22,800/73,200–73,500 would act as a key resistance zone for bulls. A successful breakout above 22,800/73,500 could propel the market towards 23,000-23,070/74,000-74,200. Conversely, a decline below 22,450/72300 would take the market towards 22,250-22,300/71,700-71,900," said Shrikant Chouhan, Head Equity Research, Kotak Neo.

"Nifty must reclaim last week’s high of 22,776 to secure fresh bullish confirmation and that would open the way toward the next resistance band of 23,100–23,150. On the downside, 22,300 remains the pivotal support zone," said Devarsh Vakil, Head of Prime Research at HDFC Securities.

"With Sensex weekly expiry today, volatility could remain elevated, leading to sharp intraday moves. A sustained recovery could take Nifty towards 22,750–22,850, while a decisive break below 22,500 may invite fresh selling pressure. Traders should focus on price action around key levels and avoid chasing sudden moves during the expiry session," said Gaurav Udani, Founder, Thincredblu Securities.