India VIX was up 1.12% from 11.12 to 11.24 levels. Volatility is overall at its lower band but moved in a zig zag fashion, which created swings within a smaller range in the index.
Option data suggests a broader trading range between 18,400 and 18,900 zones while an immediate trading range between 18,450 and 18,750 zones.
The immediate supports like daily 10-day and 200-day EMAs have been offering base for Nifty for the last two months.
What should traders do? Here’s what analysts said:
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Nifty has managed to hold on above the 18,530 level, below which the uptrend is likely to change. The hourly momentum indicator has triggered a fresh positive crossover, however, the daily momentum indicator has a negative crossover and thus provides divergent signals. The Bollinger bands are contracting, indicating that there can be a consolidation. Thus, both price and momentum indicators are suggesting that there could be a consolidation in the near term and the overall uptrend is still intact.
In terms of levels, 18,530 – 18,500 shall act as a crucial support zone while 18,778 – 18,800 shall act as an immediate hurdle zone.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The positive chart pattern like higher tops and bottoms is also intact and the recent weakness from the highs could be in line with the new higher low formation of the pattern. The higher bottom reversal needs to be confirmed with positive close by next session.
The overall chart pattern signals chances of an upside bounce in the coming session. Immediate support is at 18,500 levels and crucial overhead resistance is placed at 18,800 levels.
Rupak De, Senior Technical at LKP Securities
For Nifty, the initial support is expected to be found at the level of 18,600, where significant Put writing has been observed. This indicates that there is buying interest at this level, potentially providing a floor for the index. On the other hand, resistance levels are seen at 18,650 and 18,800, indicating potential barriers for the Nifty’s upward movement.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Technically, Nifty hovered between 18,560 and 18,630, and the narrow-range activity clearly indicates indecisiveness between bulls and bears. For traders, 18,550 would be the immediate support level, above which the index could move up till 18,650-18,700. On the other hand, a fresh sell-off is possible only after the dismissal of 18,550. Below the same, the index could slip till 18,500-18,450.
Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform
Nifty is currently taking support at the bottom trend-line on the weekly chart which is a good sign. Breaking of this trend channel will not cause a complete downfall in the Index as there is still support around the 18,400 level. Bank Nifty seems to have become the bigger laggard even though it has strong put writing at 44,000,43,500 and the 43,000 levels. But this index needs to close above the 44,550-mark for Nifty to scale its all-time highs. As of now, the current expiry seems to be hinting towards range bound movement between 18,450 and 18,750 on the upside.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)