Nifty opened flat and traded within a narrow range, ending the day with a negative close at 24,205, Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates said, highlighting that it was the Nifty Smallcap 100 index that outperformed the benchmarks, gaining about 1.15%.
Fear index India VIX initially surged around 4% but settled up by 0.35% at 15.57, indicating a slight cooling of volatility.
“Technically, Nifty formed a red candle on the daily chart, suggesting weakness, and has been consolidating between 24,000 and 24,500 for the past few sessions. A breakout on either side of this range could set the next direction for Nifty,” Yedve said.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
The Nifty index remained volatile before closing on a negative note. On the hourly chart, it encountered resistance around the 21 EMA, leading to a pullback toward 24,200. Sentiment may continue to remain weak as long as Nifty stays below 24,500, with any rise toward this level likely facing selling pressure. On the downside, support is placed at 24,000, while resistance levels are seen at 24,500 and 24,750.Jatin Gedia, Sharekhan by BNP Paribas
Nifty opened with a gap down on Thursday and witnessed volatile price action during the day. It closed down 126 points. On the daily charts we can observe that the Nifty has been trading in the range of 24,500–24,070 for the last five trading sessions. The range-bound action in the index is likely to continue on account of the monthly expiry of October series derivative contracts. Post that we are likely to witness trending moves. Crucial support levels are 24,200 – 24,180 while resistance is placed at 24,500 – 24,550.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)