Tech View: Brick wall of 19,500 still stands strong for Nifty. What traders should do on Friday

India VIX was down by 0.02% from 10.94 to 10.93 levels. Volatility is hovering near its lower band which may support the bulls near immediate support zones.

Option data suggests a broader trading range in between 19100 to 19700 zones while an immediate trading range is between 19,250 to 19,550 zones.

In the last week, the market has been range-bound around 19,500-19,300 levels. The daily Relative Strength Index (RSI) indicated a bearish crossover.

What should traders do? Here’s what analysts said:

Rahul K Ghose, Founder & CEO – Hedged
The brick-wall of 19,500 still stands strong for Nifty. Today’s sell-off shows the difficulty it is having to sustain it. But all is not lost as the month-end OI data still suggests that this level of 19,500 should get taken out once again in the July series itself. Today we saw a rise in the 19,600 puts of the July-end expiry which is far in the money that also signals the same. It also shows that today’s fall might not sustain in the short term. Bank Nifty has a stronger resistance at the 45,200 level and all rallies will get sold into unless we see a decisive closing above this level.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Nifty is likely to consolidate in the range of 19,300 – 19,570 and until this range is decisively breached on either side we can expect the sideways price action to continue. Overall, the trend is positive, and Nifty is undergoing time-wise correction. The crucial support zone stands at 19,360 – 19,320 while the resistance zone is placed at 19,550 – 19,570.

As far as Bank Nifty is concerned, the index has now reached the lower end of that channel and also the 50% Fibonacci retracement level (44,600) which should attract buying interest. We expect the Bank Nifty to start recovering as it has now reached a crucial support zone. On the upside initially, we expect it to target 45,000.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities
We observe minor degrees of higher lows and the overall trend status for Nifty remains positive. Any weakness below the immediate support of 19,300 could drag Nifty down to 19,200-19,100 levels in the near term. A decisive upside above 19,550 is likely to bring more upside for the short term.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)