Options data suggests a shift in a trading range between 18000 to 18600 zones while an immediate range between 18100 to 18500 zones.
Fear gauge index India VIX was up by 2.48% from 13.73 to 14.07 levels. Volatility spiked from lows as the market reacted sharply on the negative side after a long time.
Chart readers said lower top formation on the daily scale and double top reversal formation on intraday charts, indicating further downside from the current levels.
What should traders do? Here’s what analysts said:
Amol Athawale, Deputy Vice President – Technical Research at Kotak Securities
The next support level for the index would be the 50-day SMA or 18100-18000 levels. On the flip side, 18400 could act as an immediate resistance zone for the index, and above the same the index could retest the 20-day SMA or 18550. In case of further upside, the index could move up to 18700.
Nagaraj Shetti, Technical Research Analyst, Securities
Having moved below the crucial immediate support of 18500 levels, as per weekly chart, the Nifty could slide down to the next important support of 18100-18000 levels in the coming week. Immediate resistance is at 18450-18500 levels.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Nifty has now sneaked below the key swing low of 18350 on a closing basis. Ideally, looking at the price structure, the development does not augur well for the bulls. A close below this support opens the possibility of an extended correction in the coming week. We may be biased, but we are still not convinced with this close. Only a follow-through selling may lead to further weakness towards 18130 – 18000 – 17900 in coming sessions.
Even if this scenario pans out, we do not expect the correction to aggravate below the lower end of this support range. The higher degree up trend remains intact as long as we manage to hold this.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)