India VIX was down by 2.50% from 11.78 to 11.48 levels. Volatility cooled off from its highs but is overall trading at its record low zones.
Options data suggests a shift in trading range between 19500 to 20200 zones while an immediate trading range between 19600 to 20000 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
A crucial support level for Nifty lies at 19700, marked by significant Put writing. Should the index breach this level, it may lead to a substantial market correction. On the upside, resistance is positioned at 20,000.
Rahul Ghose, Founder & CEO – Hedged
19,500 still remains a strong support for Nifty and the index is likely to take support over here. Bank Nifty saw a good bit of put writing on Friday at the 46000 level. Hence this level was defended the whole day. The writing in the 46000, put happened for the August series as well signalling that all is not lost and this is just a knee-jerk reaction. As long as the 44600 level holds, we expect the Nifty to bounce back next week.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The immediate support of 10-day EMA is at 19650 levels and important 20-day EMA support is at 19425 levels. The said 20-day EMA has been offering support for the market for the past three months. Hence, there is a possibility of an upside bounce in the market on further weakness from here. On the way up, the area of 19850-19900 levels could act as a stiff resistance.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)