Fear gauge index India VIX rose 7.38% to 13.68 from 12.75. The volatility negated the lower high formation of the last seven trading sessions and now a calm is needed to resume market stability.
Options data suggests a broad trading range between 17400 to 18200 zone, while an immediate trading range between 17650-17950 zone.
What should traders do? Here’s what analysts said:
Shirkant Chauhan, Head of Equity Research (Retail), Kotak Securities
17,850 will now act as a major resistance area for the traders. Below this the Nifty may slip till 17650-17600. On the downside, a fresh bullish rally is possible only after rejection of 17850, above which the market can move to 17925-17950.
By Jatin Gedia, Technical Research Analyst, Sharekhan
Since last week, Nifty has been range-bound, and the range-bound action is likely to continue till we get a decisive move above 17850 – 17900 zone. There is a positive crossover in the Daily Momentum Indicator which is a buy signal and also suggests that buying should be done on this decline. Overall, we expect Nifty to test the upper end of the downward-sloping channel (18100) from a short-term perspective.
Ajit Mishra, VP – Technical Research, Broking
The fall in the index has pushed back the bulls a bit, but they are not out of the game just yet. A decisive close below 17650 in Nifty may reverse the bias in favor of further downside otherwise range-bound move will continue. In the meantime, we reiterate our view of focusing on stock-specific opportunities and holding positions on both sides.(Disclaimer: The recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times)