Nifty may remain range-bound till Fed meet outcome. What investors should do on Tuesday

Here’s what analysts say:

Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One
The undertone is expected to remain upbeat till Nifty sustains above the unfilled gap of the 17,400-17,380 zone. Meanwhile, some tentativeness could be sensed until the unfilled gap of 17,820-17,860 is not taken out.

Looking at the technical setup, the market is likely to trade within the range until a decisive breakout is not seen on either side in the comparable period. Going forward, many stock-specific adjustments are likely to continue and provide substantial trading opportunities.

Nagaraj Shetti, Technical Research Analyst, Securities
The short-term trend of the Nifty continues to be negative. Monday’s upside bounce could be a cheering factor for the bulls to make a comeback. Further sustainable up move from here could pull Nifty towards the 18K mark again. Any weakness below the support of 17,450 levels could open the next downside towards the 17,100-17,000 levels in the near term.

Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities
Nifty50 managed to close above the upward-sloping trend line adjoining the daily lows of June 20 and July 1, 2022. Resistance for the index is seen at 17,760 and 17,826, which happens to be 50 per cent and 61.8 per cent retracement of the entire fall seen from 18,088 (a recent swing high made on September 13) and today’s low of 17,429. Below 17,429, the Nifty is expected to enter a short-term down trend. On the higher side, 18,100 seems to have become a ceiling for the short term.

Rupak De, Senior Technical Analyst at
Nifty has remained range-bound as investors await the FOMC outcome. On the lower end, Nifty found support above 17,400, whereas bears protected the 17,700 mark. The trend is likely to remain sideward over the near term. Support is at 17,350-17,400 and a fall below 17,350 may trigger a correction towards 17,000. On the higher end, 17,700 may act as a crucial resistance. A decisive move above 17,700 may induce a rally towards 17,900/18,100.

Ajit Mishra, VP – Research, Broking

We expect choppiness to continue amid the feeble global cues. So, it’s prudent to place positions on both sides. Banking and financials are doing well on the expected lines, and we’re seeing selective buying in auto and FMCG on dips. On the flip side, mostly stocks from the IT and pharma space trading with a negative bias. Participants should align their positions accordingly.

Chandan ,

On the Options front, Maximum Call OI is at 18,000, then 18,500 strike, while Maximum Put OI is at 17,500, then 17,000 strike. Call writing is seen at 17,700, then 17,800 strikes, while Put writing is seen at 17,500, then 17,400 strikes. Options data suggests a broader trading range between 17,000 to 18,200 zones, while immediate range in between 17,300 to 17,800 zones.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)