Indicating a breather movement after the sharp upside bounce seen in the last two days, Nifty on Wednesday formed a small positive candle with an upper shadow on the daily charts. The market is currently placed at the hurdle of 18150-18200 levels (resistance of ascending trend line), which has not been surpassed decisively on the upside.
If Nifty manages to sustain above 18200 levels in the short term, then the downside breakout of the said support that happened on Friday could be considered as a false downside breakout, and such development is likely to have sharp positive implications on the market, said Nagaraj Shetti of
Securities.
Volume profile indicates Nifty may find further support around the 18000-18050 zone. OI data showed that on the Call side, the highest OI was observed at 18200, followed by 18300 strike prices, while on the Put side, the highest OI was at 18100 strike prices.
Analysts noted that declines are being bought into, but follow-up buying is missing at higher levels. Volatility is expected to be higher tomorrow amid weekly and monthly F&O expiry.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
During the day, Nifty remained range bound as traders awaited a clear direction. On the higher end, it failed to sustain above the 50 EMA, whereas on the lower end, it sustained above the support of 18,070. Going ahead, a decisive move above 18,155 will be required for a further directional up move. On the lower end, support is intact at 18,070.
Ajit Mishra, VP – Technical Research, Broking
Indications are pointing towards a range-bound trend to continue in Nifty, and we expect stock-specific moves to keep the participants occupied, thanks to the scheduled expiry of December month derivatives contracts. Besides, the broader indices are also showing some stability, so participants can selectively look for buying opportunities.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The daily chart shows that the index has moved up to retest a trendline, which was broken on the downside on Friday last week. 18150-18200 is the key resistance zone, which indeed proved to be a crucial barrier for the day. As long as the index stays below this resistance zone on a closing basis, it is likely to witness consolidation in the short term. 18000-18200 can be the tight range for the Nifty with crucial support at 17800.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty is placed at the crucial resistance of 18200 levels, but there is no indication of any sharp negative reversal pattern unfolding at the hurdle. One may expect further consolidation or minor weakness in the next 1-2 sessions before showing an upside breakout of the said hurdle. Immediate support is at 18000 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The intraday texture is still on the positive side. We are of the view that the market completed one leg of a pullback rally but fresh selling is possible only after the dismissal of 18050/60650. Below the same, the index could slip till 18000-17950/60500-60200. On the flip side, above 18050/60650, the index could move up to 18225-18275/61200-61400 or 50-day SMA.
(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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