Now it has to hold above 17,500 zones to extend the move towards 17,700 and 17,777 zones, while on the downside, supports shift higher at 17,442 then 17,350 marks, said
Chandan Taparia of Motilal Oswal.
Chart readers said after witnessing a decisive upside breakout of the crucial resistance of 17,200 recently, Nifty is now placed at the edge of moving strongly above another important resistance of around 17,600 levels (opening a significant downside gap of 10th March).
Fear gauge index India VIX was down by 1.33% from 12.58 to 12.41 levels. Volatility has been falling from the last five trading sessions and giving comfort to the bulls.
Options data suggests a broader trading range between 17100 to 17800 zones, while an immediate trading range between 17400 to 17700 zones.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty continues to be positive and we expect this upside momentum to continue in the coming sessions. The near-term upside targets for the Nifty are around 17800 and the next 18250 levels for the next week. Immediate support is placed at 17400 levels.
Rahul Ghose, Founder & CEO, Hedged
A good play for tomorrow’s expiry for traders would be to take the 17,500 short straddles, with a 17600 CE long leg assuming the index opens around the 17,500 or very close to this level. This will ensure there is protection on the upside in case of a rally and one can always sell an additional put or call depending upon the direction of movement in the first half if required.Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Although we believe that the market’s short-term structure is strong, transitory overbought situations may cause some profit-taking at higher levels. The current resistance level for day traders would be 17,600-17,650, while the important support area would be 17,450-17,400. The uptrend would be at risk if it fell below the 17,400 level.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
