Option data suggests a broader trading range between 16,600 and 17,500 zones while an immediate trading range between 16,800 and 17,300 zones.
The momentum indicator has a negative crossover, which is a sell signal, and with prices trading along the expanding lower Bollinger band suggests that the fall is likely to continue, chart readers said.
What should traders do? Here’s what analysts said:
Rahul Ghose, Founder & CEO, Hedged
The only silver lining that remains now is that the weekly trend channel has not yet been broken and the last support for Nifty lies currently at 16,740 levels. This level also coincides with the bottom of the weekly demand zone. At this level of 16,740, all put writers that are currently at 17,000 level will also have to book their positions at loss, further adding to the downside momentum.
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One
Technically, the market has entered way below oversold territory, and any relief on the global front could accelerate momentum on the higher side. As far as levels are concerned, 17,200 is likely to be seen as immediate resistance, followed by the sturdy hurdle of 200 SMA, placed around the 17,400–17,450 odd zone in the comparable period. On the downside, strong demand is expected near 17,000–16,900 odd levels.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The preferred strategy to trade in Nifty would be to sell on the rise around the 17,150-17,200 zone. On the downside, we expect Nifty to target levels of 16,950 where the lower end of the downward sloping channel is placed. On the upside, 17,380-17,400 where the 40-hour moving average is placed should act as an immediate hurdle zone from a short-term perspective.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
