Tech View: Nifty may remain sideways till expiry. What traders should do on Tuesday

Now it has to hold above 19300 zones to extend the move towards 19420 and fresh all-time high levels of 19525 zones, while on the downside support is intact at 19250 and 19100 zones, said Chandan Taparia of Motilal Oswal.

India VIX was down by 0.59% from 11.53 to 11.46 levels. Volatility sunk lower and is hovering near its lower band, which may support the bulls near-immediate support zones.
Options data suggests a broader trading range between 19100 to 19700 zones, while an immediate trading range between 19200 to 19500 zones.

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

Rahul K Ghose, Founder & CEO – Hedged
Based on open interest data, Nifty is set to remain sideways for this week’s expiry, with a hint of profit booking likely to continue. Bank Nifty, on the other hand, has a broader range pegged between 44000 and 45500. This range should be the case even for the July monthly expiry unless we see a sharp rise in put writers at the 45000 PE strike. As playing a directional view might not be prudent at this point, traders are recommended to initiate short straddles with offsets until 19500 gets taken out on the upside or 19100 on the downside.

Rupak De, Senior Technical analyst at LKP Securities
Bulls managed to defend the support level of 19300, preventing a significant decline. However, the hourly RSI indicated a bearish crossover. This suggests a potential shift towards a downward trend. If the support level of 19300 is breached, a correction in the market may be expected. On the upside, resistance levels are anticipated around 19450-19500.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty is in the process of retracing the rise it has witnessed in the previous couple of weeks. The crucial Fibonacci retracement level and gap area coincide around 19200 – 19180, which could act as a support zone from a short-term perspective, and on the upside, 19520 – 19550 shall act as an immediate hurdle zone from a short-term perspective. The daily momentum indicator has a positive crossover, and thus this dip should be bought into.Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Nifty found resistance near 19435 while 19330 acted as a key support zone. For day traders, a fresh uptrend rally is possible only after the 19435 breakouts, above which the market could rally till 19500-19525. On the other hand, a fresh sell-off could be seen after the dismissal of 19330, and below the same, the index could slip to 19250-19200.

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