India VIX was down by 3.28% to 12.88 levels from 13.31. Volatility dropped to its multi-month low and has been hovering at lower levels from the last two months.
Option data suggests a trading range in between 18,300 and 19,000 zones, while an immediate trading range in between 18,400 and 18,750 zones.
The index managed to hold a middle Bollinger on daily charts and not only reclaimed the 20-day SMA (simple moving average) level but also closed above the same, which is broadly positive.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
Indian Nifty has reclaimed 18,500 after a brief slip below the crucial level. However, the overall sentiment remains subdued as the index needs to move above 18,700 for bulls to take control. Over the near term, the trend may remain sideways, with supports placed at 18,500. Resistances on the higher end can be seen at 18,630/18,700.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd
The uptrend texture is likely to continue in the near future and 18,700-18,725 would be the next resistance zone for the bulls. On the other hand, a fresh selloff could be seen only after the dismissal of 18,450.
Ajit Mishra, VP – Research, Broking
Indications are in favour of further rebound. However, a lot would depend upon how the US market reacts to the inflation data. On the index front, Nifty could find a hurdle around 18,750 and the banking index may take a breather around 44,250 levels. Amid the prevailing consolidation, we reiterate our positive tone and suggest continuing with the “buy on dips” approach.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Overall, the chart structure shows that the Nifty is likely to continue with the short-term consolidation in the range of 18,300-18,650. The Bank Nifty is stone’s throw away from the short term target of 44,000 beyond which it can target 44,500.
Nagaraj Shetti, Technical Research Analyst, Securities
The short-term trend of Nifty continues to be positive and a sustainable move above the hurdle of 18,650 is expected to be an upside breakout of the crucial overhead resistance. The said upside breakout is likely to open doors for new all-time highs in the near term. Immediate support is placed at 18,500 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
