Indicators like RSI and MACD is losing strength, suggesting that this weakness will persist. India’s VIX Fear Index rose 0.30% from 14.98 to 15.02. Volatility needs to cool down below 14 zones to stay stable.
Options data shows a change in trading range between the 17,600 and 18,350 zones and an immediate trading range between the 17,700 and 18,200 zones.
What should traders do? Here’s what the analysts had to say:
Ajit Mishra, VP – Technical Research, Brokerage
Weak global signals are largely weighing on sentiment in the absence of any major actors from the domestic front. We may see the Nifty index breathe easier after the recent slide but the trend could remain negative, citing the weak structure of some of the heavyweights. Participants should arrange their positions accordingly while still testing leveraged trades.
Rupak De, Senior Technical Analyst at
The bears continue to have the upper hand as the Nifty benchmark index has posted red candles for the past three days. Nifty has found support around the previous swing low on the daily timeframe. The RSI(14) is crossing in a downtrend, showing weak price momentum in the near term. Going forward, 17,770 is likely to act as support for the declining Nifty; A definitive drop below the aforementioned level could take the index towards 17,500. On the higher end, resistance is visible at 18,000, above which a rebound could occur.
Gaurav Ratnaparkhi, Head of Engineering Research, Sharekhan by
It once again dropped to the 20 WMA, the lower Bollinger Band daily and the 50% retracement of the September-December 2022 rally. Structurally, Nifty has reached the lower end of the range. short-term consolidation, is 17,800.
Unless the index breaks 17,800 on a closing basis, it is likely to remain in short-term consolidation mode. On the downside, the 18,000 level will act as resistance for any minor bounce.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of The Economic Times. )