The headline equity index Nifty on Monday formed a Doji candle on the daily charts and closed the day with a gain of around 90 points to close above the 20-DMA. Now, it has to hold above 18081 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 .
Fear gauge index India VIX was down by 1.25% from 13.79 to 13.61 levels. Volatility cooled down from higher zones and now needs to sustain below 14 for stability to resume.
Options data suggests a trading range between 17900-18300 zones, while an immediate trading range between 18000-18250 zones.
What should traders do? Here’s what analysts said:
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The overall structure shows that the index is preparing to start the next leg on the upside. On the daily chart, it has started forming a higher top and higher bottom, and once the swing high of 18184 is crossed, then one can initiate a fresh long position. The daily upper Bollinger Band is set for an expansion, which will create room for the price action on the higher side. In the short term, the Nifty is expected to surpass the key hurdle zone of 18260-18300 & head towards 18500. On the other hand, the level of 18000 will provide a cushion on the downside.
Rohan Patil, Technical Analyst, SAMCO Securities
On the daily chart, Nifty is trading inline near the upper band of the Triangle pattern, and prices have shown optimism to sustain above its 9 and 21-EMA. Strong support is around 18,000 levels, and while these supports are held, we can expect prices to edge higher towards 18,200 levels. A daily close above 18,200 levels will help the index move further towards 18,350 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
If the optimism continues, we may see some pre-budget rally in the truncated week. On the technical front, despite the strong momentum, Nifty failed to clear the 18180 resistance mark. Currently, the index is trading above the 20-day SMA and also holding a higher bottom formation on intraday charts which is largely positive. For the traders, 18,000 would be the trend decider level, above which the index could move up to 18200-18250. On the flip side, below 18000, selling pressure is likely to intensify, which could see the index slip till 17950-17900.(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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