India VIX was down by 2.01% from 14.68 to 14.38 levels. Volatility has been cooling down and sustaining below 15 zones, paving way for support-based buying.
Daily charts show that indicators such as RSI and MACD are showing some strength to lead toward an upside. Options data suggests a broader trading range between 17800-18500 zones, while an immediate trading range between 18000-18400 zones.
What should traders do? Here’s what analysts said:
Manish Shah, Independent Technical Analyst
For the last 4 days, Nifty has been trading in a band of 18255-17957. The last two days of trading resulted in green candles, showing that the Nifty is not in the mood to decline. The resistance level for Nifty is 18,290. A break above 18290-18300 should result in Nifty showing a rally.
The International markets will be resuming their trading after a gap of a couple of days. The overnight markets are trading a positive territory. If international markets remain strong and the Nifty moves above 18290 expect the Nifty to move higher to 18400-18450 within the next 1-2 days.
Momentum indicators are showing a return of bullish momentum. MACD has curled up and RSI has crossed above 50. Nifty seems poised to move higher once the resistance at 18290 is cleared. Traders should stay alert for a potential pop to 18400-18450.
Nagaraj Shetti, Technical Research Analyst, Securities
A sustainable move above 18300 levels could be considered as a false downside breakout of the support as per the daily and weekly time frame chart and that action are likely to have a positive impact on the market ahead. Immediate support is at 18120 levels.
Rupak De, Senior Technical Analyst at
The positions of the important moving averages and the momentum indicator RSI are suggesting positive trades in the near term. However, the current chart setup doesn’t indicate any directional move. Over the short term, the index is likely to move within the range of 17,950-18,400. A breakout on either side will confirm a directional move.
Ajit Mishra, VP – Technical Research, Broking
Markets are trying to inch higher amid mixed global cues wherein buoyancy in banking and metals are largely supporting the move so far. Participants should limit their positions to relatively strong sectors. We reiterate our preference for banking and financials and suggest choosing selectively from others.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Technically, positive consolidation formation on daily charts and higher bottom formation on intraday charts is indicating the continuation of an uptrend wave in the near future. For traders, 18150 would be the trend decider level. Above this, the index could rally till 18300-18350. On the flip side, below 18150, the uptrend would be vulnerable and below the same, the index could slip to 18050-18025.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
