NEW DELHI: Indicating more weakness in the short term, headline equity index Nifty today formed a large red candle on the daily charts and negated its higher highs – higher lows formation of the last two sessions. Now, till it holds below 18442, weakness could be seen towards 18350 and 18200 zones whereas hurdles are placed at 18535 and 18650 zones, said Chandan
of
.
Momentum indicator RSI (14) has confirmed bearish momentum with a negative crossover on the daily timeframe.
Fear gauge index India VIX was up by 6.62% from 12.88 to 13.73 levels. Volatility spiked from lows as market reacted sharply on the negative side after a long time but overall it has been hovering at lower levels from the last two months.
Option data suggests a broader trading range in between 18100 to 18800 zones while an immediate range in between 18200 to 18650 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
The trend to remain negative as long as the index remains below 18,500. On the lower end, support is placed at 18,350/18,100.
Ajit Mishra, VP – Research, Broking
Nifty has almost engulfed the gains of the last 3 sessions and is likely to retest the major support zone around 18,300. Its breakdown can further dent the recovery and push the index to 18,000. Traders should closely monitor global markets, especially the US, for cues. Besides, we feel the performance of the banking index would play a critical role in setting the tone ahead while others are showing a mixed trend. Meanwhile, participants should restrict leveraged positions and maintain a few shorts also.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
With the minor degree bounce in the last couple of sessions, Nifty had retraced 61.8% retracement of the previous decline. Structurally, the index is moving down towards the lower end of the short term consolidation range i.e. 18300. Buying support can be expected again near 18300. Overall, the short term consolidation range of 18300-18700 remains intact.
Nagaraj Shetti, Technical Research Analyst, Securities
The short term trend of Nifty seems to have reversed down after a small pull back rally recently. The immediate support is placed at 18350 levels and a move below this support could drag the index down to the next support of around 18150-18100 levels in the short term. Immediate resistance is placed at 18550 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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