Fear gauge index India VIX was up by 5.87% from 14.65 to 15.51 levels. Volatility fueled up and gave way to the bears. It needs to cool down below 14 zones for stability to resume.
Options data suggests a shift in a trading range between 17600 to 18300 zones while an immediate trading range between 17700 to 18200 zones, said Chandan
of .
“For bulls, 18000 would be the key level to watch out for, and above the same, the index could retest the level of 18100-18150. On the flip side, 17800 would act as a sacrosanct support zone, below which selling pressure is likely to accelerate and drag down the index up to 17700-17675,” said Shrikant Chouhan of Kotak Securities.
What should traders do? Here’s what analysts said:
Manish Shah, Independent Technical Analyst
Nifty has not made any directional move in the last 13 sessions in one of the slowest periods in several months. The significance of this is that directional moves are absent, and price reverts back to the mean in a matter of days.
Nifty has major support at 17750 which if taken out, will take the index lower to 17550-17500. On the upside, major resistance is at 18220-18250. Nifty needs to break above 18250 for the current decline to reverse.Ajit Mishra, VP – Technical Research, Broking
Markets are gradually drifting lower amid volatility, and indications are pointing towards more pain ahead. Meanwhile, mixed global cues combined with earnings season would keep traders on the edge. We thus reiterate our view to limit positions and prefer a hedged approach, especially for overnight trades.
Nagaraj Shetti, Technical Research Analyst, Securities
The short-term trend of Nifty continued to be weak, and the market is expected to break down the lower support of 17800 levels in the short term. The anticipated downside breakout could open the immediate downside target of around 17400 levels in the near term. Any pull back rally could find resistance around 18150 levels.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)
