Now it has to hold above 19,420 zones to witness a bounce towards 19,560 then 19,620 zones whereas support exists at 19,300 then 19,250 zones, said Chandan Taparia of Motilal Oswal.
India VIX was up by 4.12% from 11.52 to 11.99 levels. Volatility spiked to 12.75 during the day but later cooled off thus paving way for the bulls at support zones.
Option data suggests a broader trading range between 19,000 and 19,800 zones while an immediate trading range between 19,200 and 19,600 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
If Nifty falls below the 19,250 mark, it might incite a corrective movement towards the 19,100-19,150 range in the near future. Conversely, resistance can be identified at the 19,550 level on the higher side.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Technically, after an early morning selloff, the Nifty took support near the 50 day SMA (Simple Moving Average) and bounced back sharply towards the end. For the day traders now, 19,350 would act as a trend decider level, above which the pullback rally could be seen which would drive the market up till 19,500-19,560. On the flip side, a fresh selloff could be seen only after the dismissal of 19,350, and below the same, the index could retest the level of 19300-19250 or 50 day SMA.
Ajit Mishra, Religare Broking
Nifty respected the support zone of the short term moving average i.e. 50 EMA, after penetrating the previous swing low at 19,300 levels. Despite the corrective tone, we have been seeing resilience in select heavyweights, which is not only keeping a check on the pace of decline and also triggering recovery in between. We feel it is prudent to stay focused on trade management amid mixed signals and wait for clarity.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
On the upside, the zone of 19450 – 19500 is a crucial hurdle where resistance in the form of the key hourly moving averages is placed, which shall restrict the upside. The daily and hourly momentum indicators are providing divergent signals. Thus, under such a situation a consolidation is highly likely. Overall, there are no signs of a trend reversal, and hence the short-term outlook is negative. On the downside we expect the Nifty to target levels of 19100. The crucial support zone on the downside is placed at 19300 – 19250 and on the upside, resistance is placed at 19450 – 19500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)