The index closed below the 50-day SMA (simple moving average) and also formed a long bearish candle on weekly charts, which is broadly negative.
Now, till it holds below 17,950 levels, weakness may be seen towards 17,650 and 17,500 zones whereas hurdles are placed at 17,950 and 18,081 zones, said Chandan
of .
India VIX was up 6.39% from 15.18 to 16.16 levels. Volatility spiked near 16.5 zones during the day and a jump from the last few sessions reflects weaker sentiments.
Volume profile indicates the index may find further support around the 17,500-17,550 zone.
Option data suggests a shift in a wider trading range between 17,500 and 18,300 zones while an immediate range between 17,600 and 18,100 zones.
What should traders do? Here’s what analysts said:
Ruchit Jain, Lead Research, 5paisa.com
Looking at the overall structure, the upside could be limited and it could just be a retracement of the recent corrective phase. Hence, traders should be very specific in picking stocks for trading and rather avoid aggressive bets. The immediate resistances on pullback moves will be seen around 18,300 and 18,400.
Amol Athawale, Deputy Vice-president, Technical Research at Kotak Securities
For traders, as long as the index is trading below 18,000, the correction wave is likely to continue and below the same, the index could slip till 17,600-17,500. On the flip side, 18,000 could act as a sacrosanct resistance zone. The dismissal of 18,000 could push the index till the 50-day SMA or 18,150-18,200.
Rupak De, Senior Technical Analyst at
The sentiment has turned extremely bearish. A further decline is expected from here with a potential near-term breach of 17,550. Resistance on the higher end is visible at 18,000-18,100.
Ajit Mishra, VP – Technical Research,
Broking
Indications are pointing towards the prevailing corrective move to extend further, with a marginal rebound in between. Mixed global cues will keep the volatility high. We recommend keeping a check on leveraged positions and preferring a hedged approach.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)