It was a roller coaster ride for traders as Nifty50 slipped below 17,800 in opening trade on Wednesday, following weak global cues but managed to recoup losses to close above 18,000, which is a positive sign.

The Nifty50 formed a bullish candle for the third consecutive day. Supertrend indicator also triggered buy on September 13, and the Golden Cross was recorded on September 9 on the daily charts.

The market closed with cuts despite the pullback from crucial support placed at 17,800. A bounce back from lows suggests that bulls are not ready to give up just yet.

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If the Nifty50 managed to hold above 17,950-18,000 levels on Thursday, bulls have a fair chance to push the index higher towards 18,200-18,300 levels, suggest experts.

The Nifty50 opened at 17,771, and closed 66 points lower at 18,003 on Wednesday.

“Nifty filled the entire gap and moved by more than 300 points from its lower zone. It continuously moved northward with a slight correction in the last hour and closed above 18,000 marks with losses of 66 points,” said Chandan

, Vice President and Derivatives analyst at Limited.

“It formed a Bullish candle on a daily scale and bulls were in complete control for most of the session. Now, it has to hold above 17,950 zones, for an up move towards 18,200 and 18,350 zones, whereas support is placed at 17,850 and 17,777 zones,” he said.

India VIX was up by 4.62 per cent from 17.47 to 18.27 levels. Volatility spiked to higher zones and now needs to come down for complete stability of the market.

On the Options front, the maximum Call OI is at 18,000, and then towards 18,500 strikes, while the Maximum Put OI is at 17,000 and then towards 17,500 strikes.

“Options data suggests a shift in a trading range in between 17,500 to 18,300 zones, while an immediate trading range in between 17,700 to 18,200 zones,” added Taparia.

On the sectoral front, Nifty PSU Bank, Metal and CPSE ended in green, while Nifty Realty, Healthcare and Nifty Pharma ended on the lower side.

“Traders took support after India’s inflation based on wholesale price index (WPI) eased to 12.41% in the month of August 2022 against 13.93% in July 2022,” Mohit Nigam, Head – PMS, Hem Securities, said.

“On the technical front, the key resistance level for Nifty50 is 18,200 and on the downside, 17,700 can act as strong support. Key resistance and support levels for Bank Nifty are 41,700 and 40,800, respectively,” he said.

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