The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicators are suggesting further upside in the index.
Fear gauge index India VIX moved down by 4.12% from 13.57 to 13.04 levels. Volatility has been overall falling from the last eight sessions and now needs to hold at lower zones for market stability.
Nifty closed above its 21-EMA, which is a positive sign. Chart readers said the market might stay bullish as long as Nifty holds above its make-or-break support at the 17,551 mark. Options data suggests a broader trading range between- 1740 18200 zones, while an immediate trading range between 17700-18050 zones.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities For traders, 17800 could act as a sacrosanct support level, while 17950 could be the important hurdle. Post 17950, the chances of hitting 18000-18100 would fbr , a fresh round of selling is possible only after the dismissal of 17,800, below which the index could retest 17650-17600 levels. Jatin Gedia, Technical Research Analyst, Sharekhan by On the upside, the zone of 17972-18000 is an immediate hu and once it is crossed we can have a sharp upside. Until the zone of 17970-18000 is not taken out decisively, we can expect the consolidation to continue. The range of consolidation from a short-term perspective is 17350-18000.
Rohan Patil, Technical Analyst, SAMCO Securities Nifty is gathering momentum, reviving bullish hopes for a test of near-term resistance at 18,000 levels. On the lower side, immediate support for the prices is placed at 17,650 levels. a breakout in the index and which may lead the prices towards 18,200 – 18,250 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times