Fear gauge index India VIX moved up by 2% from 14.40 to 14.68 levels. Volatility has overall cooled down from higher levels in the last three sessions and now needs to hold below 14 zones for market stability.
Options data suggests a broader trading range between 17400-18300 zones, while an immediate trading range between 17600-18000 zones.
Chart readers said Nifty has not yet given a closing below its exponential moving average of 200 and the 200-day SMA is also still a couple of hundred points away at 17290.
What should traders do? Here’s what analysts said:
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by Going ahead, 17700 & 17870 are key support and resistance levels, respectively. The index has the potential to stretch towards the 18000 mark as long as it stays above 17700.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak SecuritiesFor Nifty, 17700 would be the key support level and below the same, the index could slip to 17600-17520. On the flip side, a fresh rally is possible only after the dismissal of 17,825 and above the same, the index could rally till 17,900-17,925. Ajit Mishra, VP – Technical Research, Broking The recent price action on the benchmark front indicates uncertainty among participants and that might continue in the near termld the Traders main. focus more on identifying opportunities in the sectors that are showing resilience. However, it’s easier said than done as we’re seeing restricted participation. Also, managing overnight risk is equally important citing the prevailing volatile scenario.
Rupak De, Senior Technical Analyst at On the daily chart, the index has been making lower tops, suggesting a waning bullishness. However, the bulls could protect the support of 17,650. Going forward, the trend may remain sideways. On the lower end, supports are placed at 17,650/17,400. On the higher end, 17,950-18,000 may act as a crucial resistance.
Rahul Ghose, Founder & CEO, HedgedIt is better to maintain a range-bound bias on the index until we see a bullish closing on the upside above the 18260 level or the SMA of 200 on the downside is breached.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)