Negative chart patterns like lower highs and lows are intact and the index is currently on the way down to form a new lower low. “We observe a broader triangle-type pattern on the daily chart and the market is currently placed at the edge of breaking below the lower support of 19,250 levels,” said Nagaraj Shetti of HDFC Securities.
India VIX was down by 0.80% from 12.24 to 12.14 levels. Volatility rose to 12.5 during the day and has been holding above 12 from the last few sessions.
Options data suggests a broader trading range between 19000 to 19600 zones while an immediate trading range between 19100 to 19500 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
The index has consistently remained below its 21-day Exponential Moving Average (EMA), a sign that underscores the prevalence of a bearish trend. On the lower end, support is placed at 19,250. A fall below 19,250 may trigger a correction towards 19,000 and lower. On the higher end, resistance was placed at 19,500.
Nagaraj Shetti, HDFC Securities
The short-term trend of Nifty continues to be weak with range-bound action. There is a possibility of a downside breakout of the immediate support of 19,250 levels and the index could slide down to another base area of 19,100-19,000 levels in the near term. Any upside bounce could find resistance around 19,400 levels.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas
Because of the fall in the last couple of trading sessions, Nifty has also closed in the negative for the fourth consecutive week and the weekly momentum indicator has also triggered a negative crossover, indicating that weakness is setting in on a higher time frame. The lower top lower-bottom formation is still intact and hence the downtrend is intact. On the downside we expect the Nifty to target levels of 19,100.
Amol Athawale, Vice President – Technical Research, Kotak Securities
A fresh sell-off could be seen only after the dismissal of the 50-day SMA or 19,250 level, below which the index could slip till 19200-19100. On the flip side, 19,400 would act as a key resistance level for the bulls, and above the same, the index could rise to 19,450-19,500. In the case of Bank Nifty, weak sentiment is likely to continue till the time the index is trading below 44,100. Below this, it could slip to 43,500 – 43,200. On the flip side, above 44,100 it could move up to 44,400-44,600.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)