Synopsis
Fear gauge India VIX was up by 2.15% from 11.12 to 11.38 levels. Volatility negated its lower highs formation on daily frames but overall lower levels kept the index in a smaller range. Options data suggests a broader trading range between 18300 to 18800 zones, while an immediate trading range between 18450 to 18700 zones.
ETMarkets.comNEW DELHI: Suggesting indecisiveness, Nifty on Tuesday formed a Doji candle with a longer lower shadow. Now the headline index has to continue to hold above 18580 zones to witness an up move towards 18666 and 18750 zones, while on the downside support exists at 18480 and 18442 zones, said Chandan Taparia of Motilal Oswal.
Fear gauge India VIX was up by 2.15% from 11.12 to 11.38 levels. Volatility negated its lower highs formation on daily frames but overall lower levels kept the index in a smaller range.
Options data suggests a broader trading range between 18300 to 18800 zones, while an immediate trading range between 18450 to 18700 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical at LKP Securities
The overall trend is expected to remain sideways with the index not showing a clear direction in its movement. In terms of levels, there is a support level at 18,500, which suggests a potential floor for the index, while a resistance level is identified at 18,665, indicating a barrier to further upward movement.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
An identical opening and close were formed on Tuesday, which indicates the formation of Doji type candle pattern on the daily timeframe chart. Normally, such Doji formations after a reasonable upmove or down move call for reversal. Having formed this pattern amidst a range movement, the predictive value of this pattern could be less.
Immediate supports like daily 10 and 20-period EMAs are intact and the intraday buying has been emerging so far from this support in the short term. On the upper side, repeated testing of crucial hurdles around 18600-18700 levels is expected to result in a decisive upside breakout. Immediate support is at 18500 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Technically, the market is consistently holding a higher bottom formation. For traders, 18550 would be the trend decider level. Above the same, the index could move up to 18700-18750. On the flip side, below 18550, an uptrend would be vulnerable. Below the same, the market could retest the level of 18480. Any further correction could drag the index to 18440.
(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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