Tech View: Nifty charts hint at continuation of Santa Rally. What traders should do on Wednesday

Now, Nifty has to hold above 18081 zones for an up move towards 18250 and 18350 zones, whereas supports are placed at 18018 and 17950 zones, said Chandan

of .

The higher bottom intraday formation is indicating the continuation of a pullback rally in the near future. India VIX was down by 4.02% from 15.93 to 15.29 levels. Volatility cooled off from higher zones which paved the way for bulls to buy the declines in the market.

On the Option front, the maximum Call OI stood at 18200-18500 strikes, while the maximum Put OI was at 18000-17800 strikes.

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

Rupak De, Senior Technical Analyst at

On the daily chart, the rally stopped at the 50-EMA. As long as it remains above 18,070, the trend appears to be positive. On the higher end, the index may move up towards 18,350. Support on the lower end is placed at 18,070/17,950.

Ajit Mishra, VP – Technical Research, Broking

Recovery in the global indices, especially in the US, is offering respite in the absence of any major domestic trigger. The recent buoyancy in the banking pack combined with a recovery in the select index majors is encouraging. However, Nifty has multiple hurdles to cross before resuming the uptrend. We thus reiterate our view to focus on stock-specific opportunities and maintaining positions on both sides.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by

The Nifty had formed a bullish outside bar on the daily chart on December 26. Its follow-through was seen on the upside on December 27. With this, the index has moved up to retest a trendline, which was broken on the downside on Friday last week. Thus 18150-18200 is the key resistance zone to keep a tab on. If the index manages to surpass 18200 & sustains in the higher territory, then it can stretch towards 18400. On the other hand, failure near 18150-18200 can drag the Nifty back to 17800.

Nagaraj Shetti, Technical Research Analyst, Securities

After a sharp downside breakout of crucial support like ascending trendline on Friday, Nifty witnessed a decisive upside bounce in two back-to-back sessions indicating chances of a false downside breakout of the said trendline support. Hence, a sustainable move above 18150-18200 levels is likely to pull Nifty towards the next overhead resistance of 18500 levels in the near term. Immediate support is placed at 17960 levels.

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