Nifty on Tuesday ended about 26 points lower to form a small-bodied bearish candle with a long lower shadow on the daily chart. The pattern indicates that buying was visible at base but momentum and follow-up was missing. Now it has to hold above 19560 zones for an up move towards 19700 and 19800 zones whereas supports are placed at 19500 and 19420 zones, said Chandan Taparia of Motilal Oswal.
The negative chart pattern like lower tops and bottoms is intact as per the daily timeframe chart and current chart pattern indicates a possibility of a new lower top of the sequence.
India VIX was up by 2.03% from 11.10 to 11.32 levels. Volatility inched higher and caused some discomfort to the bulls, but is hovering at overall lower zones.
Option data suggests a broader trading range in between 19000 and 20000 zones, while an immediate trading range in between 19300 and 19700 zones.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty remains choppy. A move below 19500 levels could open further weakness down to the next lower supports of 19400-19350 levels. A decisive move above the hurdle of 19700 is likely to bring sharp upside momentum in the market.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Technically, after a reversal formation, the market has been witnessing a range-bound activity near the 20-day SMA (Simple Moving Average). For bulls, a fresh uptrend rally is possible only after the dismissal of 19635, and above the same the index could move till 19700-19735. On the flip side, below 19525 the selling pressure is likely to accelerate and could retest the level of 19480-19450.
Rupak De, Senior Technical analyst at LKP Securities
Nifty displayed volatility but managed to close above the significant 21-EMA moving average and maintained support above 19500 points. A positive trend is anticipated as long as the index holds above 19500, with resistance at 19700 and potential for a rally towards 20000.
Osho Krishan, Angel One
On the technical front, the resistance of the bullish gap withholds the sturdy hurdle and till we do not surpass it in a decisive manner, we are likely to experience some selling pressure at higher levels. On the downside, 19500 – 19440 – 19380 are to be treated as immediate supports.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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