Synopsis
The Nifty formed a bearish candle and closed nearly flat, and needs to hold above 18,250 zones to move upwards towards 18,400 and 18,442 zones; support is placed at 18,181 and 18,081 marks. India VIX rose by 1.03%, and volatility has been increasing for the last four sessions. Analysts suggested that Nifty is expected to consolidate in a broader trading range between 17,900 and 18,500 zones and trade in an immediate range of 18,150-18,450 zones
ANIHeadline index Nifty today formed a bearish candle on a daily scale and closed on a flattish note. Now, it has to continue to hold above 18,250 zones to witness an up move towards 18,400 and 18,442 zones while on the downside supports are placed at 18,181 and 18,081 marks, said Chandan Taparia of Motilal Oswal.
India VIX was up by 1.03% from 13.08 to 13.21 levels. Volatility has been rising for the last four sessions and creating swings in the market.
Option data suggests a broader trading range between 17,900 and 18,500 zones while an immediate trading range is placed between 18,150 and 18,450 zones.
What should traders do? Here’s what analysts said:
Rahul Ghose, Founder & CEO, Hedged
The trend for the next two weeks for the index is sideways with a bullish bias. The derivative data currently indicates that the short straddle for this monthly expiry is at the 18300 level with the highest number of call writers at the 18500 call, which further corroborates this hypothesis. Momentum indicators are also showing signs of consolidation, which is a very healthy sign for an ongoing rally. Expect Nifty to consolidate between 18180 and 18400 before it starts its next leg on the upside.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The short-term uptrend formation is still positive and the index is consistently forming a higher bottom formation, which is also supportive for bulls. We are of the view that as long as the index is trading above 18200, the uptrend formation Is likely to continue. Above which, the index could move up till 18400-18475. On the flip side, below 18200, the market could slip till 18125-18100.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty has been unable to sustain above the upper boundary 18350 and is facing selling pressure at higher levels. The divergence on the momentum indicator is also suggesting weakening of upside momentum. On the downside, the 20-hour moving average (18299) has been acting as a strong support and absorbing the selling pressure. Thus, considering the above parameters, we expect the index to consolidate in the range of 18350 – 18000 from a short-term perspective. In terms of levels, 18350 – 18400 shall act as a crucial support zone while 18220 – 18200 shall act as a crucial support zone.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
…moreless
