Fear gauge index India VIX moved up by 4.69% from 13.38 to 14 levels. Volatility has been rising from the last three sessions but has been overall deflated from the last three weeks.
Option data suggests a broader trading range between 17,650 and 18,100 zones while a shift in immediate trading range between 17,700 and 18,000 zones.
The hourly momentum indicator shows that a positive divergence is developing, which is a sign that the selling pressure is weakening.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The positive chart pattern like higher tops and bottoms is intact and present weakness could be in line with the formation of new higher bottoms of the sequence. But, still there is no confirmation of any higher bottom reversal at the lows. There is a possibility of an upside bounce in the market from near the support of 17,700-17,750 levels. Immediate resistance is placed at 17,950-18,000 levels.
Rupak De, Senior Technical Analyst at LKP Securities
The bias remains negative as Nifty fell back into the descending channel on the daily chart. Besides, the momentum oscillator RSI has entered a bearish crossover. On the lower end, immediate support is visible at 17,750, below which the selling pressure may increase.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the hourly charts, we can observe that the key hourly moving averages placed in the zone 17,920 – 17,950 acted as a stiff resistance and the morning bounce fizzled out after reaching this resistance zone. On the hourly momentum indicator, we can observe a positive divergence developing, which is a sign that the selling pressure is weakening. Thus, price and momentum indicators are providing divergent signals and in such a scenario a consolidation is highly likely.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Nifty has formed a bearish candle on daily charts, which is broadly negative for the market. As long as the index is trading below 17,900, the weak sentiment is likely to continue and below the same it could slip till 17,750-17,700. On the flip side, a quick pullback is possible if the market trades above 17,900 and on further appreciation it could move up to 17,950-18,000.
(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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