Tech View: Nifty kicks off 2023 with bullish candle. What traders should do on Tuesday

The index, however, negated its higher highs formation of the last five sessions. Now, it has to continue to hold above 18181 zones for an up move towards 18350 and 18442 levels, whereas supports are placed at 18081 and 18018 levels, said Chandan

of .

India VIX was down by 1.24% from 14.87 to 14.68 levels. Volatility recently cooled down below 15 zones and needs to hold below 14 marks for a smoother market ride.

Options data suggests a broader trading range between 17800 to 18500 zones, while an immediate trading range in between 18000 to 18400 zones.

What should traders do? Here’s what analysts said:


Manish Shah, Independent Technical Analyst
Nifty has moved above the 38.2 per cent retrace of 18867-17774 decline. The 50 per cent retracement is at 18290. Once Nifty breaches 18290-18300, expect a continuation and retest of 18867. Over the next few days, playing for Jan 5, expiry traders should target 18430-18450 levels as a short-term play on the buy side.

Stay long in Nifty for a burst over the next couple of days.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Nifty has been witnessing short-term consolidation for the last few sessions. On the higher side, a rising trendline and the key daily moving averages are acting as resistances, whereas the 20-week moving average and the 50% retracement of the Sept–Dec 2022 rally are providing support on the downside. The overall structure shows that the index can continue with the short-term consolidation in the range of 17800-18400. Within this range, the Nifty is attempting a move towards 18400. The level of 18000 is acting as an intermediate support.

Nagaraj Shetti, Technical Research Analyst, Securities
Nifty is continuously tagging the hurdle of down sloping trend line over the last 4-5 sessions. After the downside breakout of the said trendline on 23rd December, Nifty failed to show any decisive follow-through weakness since then. This could raise some hopes for bulls to make a comeback. A sustainable move above 18265-18300 levels could pull Nifty towards another hurdle of 18500 levels in a quick period of time. Immediate support is placed at 18080 levels.

Rupak De, Senior Technical Analyst at
The index has moved back above 50 EMA with the strength indicator RSI in a bullish crossover. The trend remains positive as long as it sustains above 17,950; resistance on the higher end is visible at 18,400.

Ajit Mishra, VP – Technical Research, Broking
We expect the prevailing consolidation to continue in the index amid mixed global cues and the lack of any major trigger. However, the tone is likely to remain positive until the Nifty breaks 18000 levels. Participants should maintain their focus on identifying stocks from across sectors, barring pharma. At the same time, one shouldn’t get carried away with the recovery in the broader indices and stick with the fundamentally sound counters.

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