The index has been making higher highs from the last five sessions, and supports are gradually shifting higher. “Now, it has to hold above 18500 zones for an up move towards 18700 then, 18881 zones, whereas supports are placed at 18450 and zo ,” said Chandan
Fear gauge index India VIX was up by 0.41% from 13.56 to 13.61 levels. Volatility slightly moved up, but overall it has been cooling off from the last nine weeks and supporting the bulls to hold at higher zones.
The momentum oscillator RSI is in a positive crossover. The crucial short-term moving averages are sitting below the index value, confirming the positive trend.
Options data suggests a broader trading range between 18200 to 19000 zones, while an immediate trading range is between 18400 to 18800 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at The trend is likely to remain bullish as long as it remains above 18,500, where significant Put writing has been seen. On the higher end, resistance is visible at 18,800.
Ajit Mishra, VP – Research, BrokingMarkets have been maintaining a positive tone thanks to rotational buying in index majors. However, mixed global cues and the existence of a hurdle around 18700 in Nifty may cap the upside and trigger some consolidation too. Apart from banking and IT, we’re seeing buying interest emerging in the defensive pack viz FMCG and selectively in pharma. Traders should align their positions accordingly.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak SecuritiesTechnically, the market is holding higher high and higher low formation, which is broadly positive. Hence, the support has now shifted to 18550 from 18450. As long as the index is above 18550 , the uptrend wave is likely to continue. Above this, the market could move up to 18750-18800.
Nagaraj Shetti, Technical Research Analyst, SecuritiesThe positive chart pattern, like higher tops and bottoms, is intact as per daily chart, and the market is now in line with the formation of new higher tops of the sequence. Though, tiredness is visible in the market there is no confirmation of any reversal pattern unfolding at the new highs. Immediate support is at 18500, and the next overhead resistance to be watched around 18950.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)