“Nifty is now placed at the crucial resistance of 18,650 level and is not showing any strength to surpass the hurdle decisively. A sustainable up move from here could confirm an upside breakout of the resistance and any failure is likely to result in minor downward correction ahead,” said Nagaraj Shetti of
India VIX was marginally up by 0.04% at 12.88 levels. Volatility dropped to its multi-months low levels and has been hovering at lower levels from the last two months. Option data suggests a broader trading range in between 18,300 and 19,000 zones while an immediate range in between 18,400 and 18,800 zones.
Thursday’s market movement would depend on the stance taken by US Fed Chair Jerome Powell and how the US markets react to it.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
Nifty remained range-bound following a start with an upside gap. On the higher end, however, it failed to move beyond the resistance of 18,700. The trend remains positive as long as it holds above 18,500. On the higher end, the directional up move may come above 18,700 only. Till then, Nifty may remain within the range of 18,500-18,700.
Ajit Mishra, VP – Research, Broking
Markets will react to the outcome of the US Fed meet in early trade on Thursday. A decisive move above 18,750 in Nifty would further fuel the recovery, else consolidation will resume. Meanwhile, traders should maintain their focus on identifying stocks from the sectors trading upbeat. Apart from the index majors, one can selectively choose from the broader indices too, citing the recent improvement in their participation.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Fibonacci retracement shows that the index has done deep retracement of the entire recent decline & has reached 61.8% retracement mark. The Nifty formed a distribution throughout the day near the key Fibonacci level & moved lower towards the end of the session. Overall structure shows that the index is still in short-term consolidation & can trade around 18,700-18,300 over the next few sessions.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty remains positive. A decisive move above 18,650-18,700 levels could bring bulls back into the market. Any failure to sustain the highs is likely to indicate more consolidation or minor weakness for the short term. Immediate support is placed at 18,490.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)