India VIX was down by 1.51% from 12.26 to 12.07 levels. Volatility spiked towards 13 mark on Monday but later cooled off from its highs. Option data suggests a shift in trading range between 17,400 and 18,000 zones while a shift in immediate trading range between 17,500 and 17,850 zones.
Chart readers said Nifty is currently sustaining at the support of previous upside broken trend line hurdle around 17,600 levels, as per the concept of change in polarity. This support is visible in Nifty as per daily and weekly time frame charts.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
We are of the view that 17,800/60,200 will now act as an important resistance area for traders. Above that, the market can go up to 17,870-18,000/58,500-58,700. On the downside, selling pressure may increase below 17,600/59,550. Below this, the index may test 17,500-17,400/59,300-59,000 levels again. The strategy should be to buy between 17,500 and 17,450. For this, keep a stop loss at 17,400/59,000.
Rahul Ghose, Founder & CEO – Hedged
Nifty has highest open interest at 18,000 CE level and 17,000 PE level, which indicates that even though it is a ‘buy on dips’ market, there is more room on the downside with the current data and hence traders should initiate only hedged positions if done on the long side in Nifty.Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty remains choppy and the medium uptrend status intact. There is a possibility of some more consolidation for the next 1 or 2 sessions before resuming its upside momentum again from the lows. Immediate support is around 17,600-17,500 levels.
Rohan Patil, Technical Analyst, SAMCO Securities
Over the near term, the trend is likely to remain in a bullish to sideways tone as the bullish breakout of a falling channel pattern is still valid. The validity of the bullish pattern stands above 17,500 levels, which can be considered an immediate support for the index.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)