Indicators such as RSI and MACD are losing strength, suggesting that this weakness will persist. Fear gauge index India VIX was up 0.30% from 14.98 to 15.02 levels. Volatility needs to cool down below 14 zones for stability to resume.
Option data suggest a shift in trading range between 17,600 and 18,350 zones and an immediate trading range between 17,700 and 18,200 zones.
What should traders do? Here’s what analysts said:
Ajit Mishra, VP – Technical Research, Broking
Weak global cues are largely weighing on sentiment in the absence of any major trigger from the domestic front. We may see some breather in the Nifty index after the recent slide but the tone is likely to remain negative, citing the weak structure of several index heavyweights. Participants should align their positions accordingly while keeping a check on leveraged trades.
Rupak De, Senior Technical Analyst at
Bears continue to have the upper hand as benchmark index Nifty has been posting red candles for the last three days. Nifty found support around the previous swing low on the daily timeframe.
The momentum indicator RSI (14) is in bearish crossover, suggesting weak price momentum for the near term. Going forward, 17,770 is likely to act as support for the falling Nifty; a decisive fall below the said level may take the index towards 17,500. On the higher end, resistance is visible at 18,000, above which a recovery may come.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
It has once again fallen towards the 20 WMA, daily lower Bollinger Band & the 50% retracement of the September-December 2022 rally. Structurally, the Nifty has reached the lower end of the short-term consolidation range, which is 17,800.
Unless the index breaks 17,800 on a closing basis, it is likely to stay in the short-term consolidation mode. On the other hand, the level of 18,000 will act as a resistance for any minor degree bounce.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)