Fear gauge index India VIX has been rising for the last four sessions, giving discomfort to bulls in the market.
Options data suggests a broader trading range between 17,000 to 17,800 zones, while an immediate trading range in between 17,200 to 17,600 zones.
What should traders do? Here’s what analysts said:
Amol Athawale, Deputy Vice-President – Technical Research, Kotak Securities
For positional traders, 17,550 would act as a medium-term resistance zone, and below the same, the index could slip to 17150. On the flip side, a minor pullback rally is possible if the index trades above 17425 and could move up to 17480-17500.
Rahul Ghose, Founder & CEO, Hedged
Nifty is in a demand area and has support up to the 17,250 level. Only a close below this level will make these short sellers of PE run for cover, but until that happens, markets will try to move in the positive direction above 17,500.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Nifty is currently trading around the 200-day moving average (17434), which is attracting value buying. This could lead to volatility as both bulls and bears would try to defend and break that average. Broadly, the index has shifted its range lower to 17,800 – 17,200 from a short term perspective.
Despite the sharp fall, the daily momentum indicator has a positive crossover suggesting that this dip should be bought into. Until Nifty breaches this range decisively on either side, the rangebound action is likely to continue, and we might see sector rotation and stock specific action.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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