The negative chart pattern like lower tops and bottoms is intact as per the daily timeframe chart and current chart pattern indicates a possibility of a new lower top of the sequence.
India VIX was up by 2.03% from 11.10 to 11.32 levels. Volatility inched higher and caused some discomfort to the bulls, but is hovering at overall lower zones.
Option data suggests a broader trading range in between 19000 and 20000 zones, while an immediate trading range in between 19300 and 19700 zones.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty remains choppy. A move below 19500 levels could open further weakness down to the next lower supports of 19400-19350 levels. A decisive move above the hurdle of 19700 is likely to bring sharp upside momentum in the market.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Technically, after a reversal formation, the market has been witnessing a range-bound activity near the 20-day SMA (Simple Moving Average). For bulls, a fresh uptrend rally is possible only after the dismissal of 19635, and above the same the index could move till 19700-19735. On the flip side, below 19525 the selling pressure is likely to accelerate and could retest the level of 19480-19450.
Rupak De, Senior Technical analyst at LKP Securities
Nifty displayed volatility but managed to close above the significant 21-EMA moving average and maintained support above 19500 points. A positive trend is anticipated as long as the index holds above 19500, with resistance at 19700 and potential for a rally towards 20000.
Osho Krishan, Angel One
On the technical front, the resistance of the bullish gap withholds the sturdy hurdle and till we do not surpass it in a decisive manner, we are likely to experience some selling pressure at higher levels. On the downside, 19500 – 19440 – 19380 are to be treated as immediate supports.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)