Nifty has repeatedly been testing the support of 17,800 levels by forming lower highs. The market action of the last 2-3 weeks also signals the formation of a triangle type pattern and Nifty is now placed at the lower end of a triangle, said Nagaraj Shetti of
Securities.
On the call side, the highest OI was observed at 18,000 followed by 18,100 strike prices while on the put side, the highest OI was at 17,800 strike price.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
The market sentiment remains negative as the benchmark Nifty fell below the crucial short-term moving average (50 EMA). The daily RSI is in bearish crossover on the daily timeframe, suggesting sluggish momentum. Over the short term, the trend is likely to remain sideways or negative. On the higher end, resistance is visible at 18,000/18,250. On the lower end, support is visible at 17,800.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Currently, the market is witnessing non-directional activity and, perhaps, traders are waiting for the either side breakout. For bulls, 18,000 would be an important breakout level to watch out for and above the same, we can expect a quick uptrend rally towards 18,100-18,150 levels. On the flip side, trading below 17,800 may trigger further weakness up to 17,700-17,675.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty continues to be negative with choppy movement. Having failed to show any sustainable upside bounce from the lower supports recently, the odds of decisive downside breakout below 17,800 levels is higher in the near term. Immediate resistance is placed around 18,000 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)