Indicating non-directional activity in the market, the headline equity index Nifty today formed a Doji candle on the daily charts on weekly derivative expiry. The index has been making higher lows from the last five sessions.
Now, it has to hold above 18,081 zones for an up move towards 18,181 and 18,250 zones whereas supports are placed at 18,018 and 17,950 zones, said Chandan
of Motial Oswal.
Fear gauge index India VIX was down by 2.85% from 14.37 to 13.96 levels. Volatility cooled down from higher zones and paved the way for the bulls at declines. Now it needs to sustain below 14 for stability to resume the uptrend.
Option data suggests a trading range in between 17,900 to 18,400 zones while an immediate trading range in between 18,000 to 18,250 zones.
What should traders do? Here’s what analysts said:
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The overall structure shows that this is only a pause and is expected to be followed by the next leg on the upside. From a short term perspective, any dip towards 18,050-18,000 can be taken as a fresh buying opportunity. Over the next few sessions, Nifty is expected to surpass the key hurdle zone of 18,260-18,300 and head towards 18,500.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
After a promising pullback rally, Nifty has formed a inside body candle formation which is indicating non-directional activity. For traders, 18,050 would be the immediate support zone and below the same the index could slip till 17,950-17,900. On the flip side, above 18,050 the index could retest the level of 18,200.
Ajit Mishra, VP – Technical Research, Broking
Though the market tone has turned positive, the participation is limited to a handful of index majors across sectors. Besides, the lack of traction on the broader front further restricts traders’ options. Traders have no option but to align their positions accordingly and focus on index majors, which are seeing consistent buying interest.(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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