Now, till it remains below 17250 zones, weakness could continue towards the next support of 17,000 and then 16,800 levels, while on the upside, hurdles are seen at 17,250 and 17,350 levels, said Chandan Taparia of Motilal Oswal.
Fear gauge index India VIX marginally fell down by 0.60% from 16.22 to 16.21 levels. Volatility took a pause after a spike in the last week but was quoting near the highest levels of the last 26 trading sessions, thus giving the overall grip to bears in the market.
Options data suggests a broader trading range between 16,600 to 17500 zones, while an immediate trading range between 16,800 to 17,300 zones.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The larger degree lower tops and bottoms continued in the Nifty as per the daily chart, and Thursday’s swing low of 16850 levels could be considered a new lower bottom of the sequence. Further upside from here could confirm this reversal pattern, and that could possibly open a sustainable upside bounce for the short term. A decisive move above the immediate hurdle of 17,200 is expected to bring a strong bounce in the market ahead. Immediate support is at 16850 levels.
Rupak De, Senior Technical Analyst at LKP Securities
Nifty found support at the lower band of the falling channel before moving higher. On the daily chart, a long-legged Doji pattern has formed, which suggests indecisiveness. Besides, the index has found support around previous congestion. Over the short term, the stock is likely to move toward 17,250. On the lower end, closing basis support is visible at 16,950.
Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities
Technically, the market is oversold, and we may see a bounce up to 17,200 with support at 16,800-16,750. Looking at the global market, there is a possibility of a small bounce, but the overall trend remains bearish.
Ajit Mishra, VP – Technical Research, Religare Broking
Global cues are still mixed. However, oversold positions and the existence of support around 16,800 in Nifty may trigger a rebound towards the 17,200 zones. Having said that, participants shouldn’t go overboard and restrict positions to stocks that are showing relatively higher strength.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
