Technology view: The charts show the continuation of range trading; How should traders play next week?

The market struggled to find direction another day, with convenient 50 swings between profit and loss as traders are not willing to take forward positions before the end of the week.

Therefore, the index could not overcome the immediate resistance level of 18580 points and ended the session 0.3% higher at 18534.10 points.

On technical charts, the index has formed a small-body Bearish candle and an inside bar on a daily scale with a longer lower shadow, indicating buying activity based on Motilal Oswal Securities’ Chandan Taparia, said Chandan Taparia of Motilal Oswal Securities. on support is still intact.

“For now, it must hold support at 18442 regions to see a move towards 18666 and 18750 regions, while on the other hand, support exists at 18442 and 1844 regions,” said Taparia. 18333.

Meanwhile, volatility has eased, resulting in mixed trading. Options data shows a wider trading range between 18200 and 18800 zones for the Nifty 50, while immediate trading ranges between 18300 and 18700 zones.

Summary of opinions of other market experts on market trends and trading strategies for the coming week:

Ashwin Ramani, Derivatives and Technical Analyst, SAMCO Securities
Nifty formed an inner candle on the daily chart. Relative Strength Index (RSI), a momentum indicator, is showing negative divergence on the daily charts of both Nifty and Bank Nifty.

Negative divergence is observed when price moves in a higher high while the RSI moves in a lower high.

The FPI’s Long-Short Ratio, a sentiment indicator, fell from 60.21% on Monday to 45.60% on Thursday, indicating that FPI now holds more short positions than long positions. .

For Nifty to resume its uptrend, it needs a decisive close above 18600.

Callers have consolidated their positions at 18600 for the week, acting as stiff resistance. For Nifty, 18500 will act as immediate support and a break below this level could take the index to 18200.

Rupak De, Senior Technical Analyst, LKP Securities:
Nifty experienced another range trading session without significant movement. It has been consolidating or trading in a narrow range for the past few days.

The relative strength index (RSI) has shown a bearish crossover, suggesting a potential downside. The overall market sentiment is expected to remain flat, indicating a lack of clear direction in the near-term.

Nifty is likely to find support at the 18450-18500 levels, while resistance levels are anticipated at 18650 and 18800.

Rahul Ghose, Founder & CEO, Hedged
Nifty today saw a buildup in both the 18500 put and 18600 call at expiration this week, signaling a range movement in the coming week.

The same pattern can also be seen on Bank Nifty. Over the course of the week saw 44000 short positions added.

Nifty currently has a congested zone between 18600 and 18700, which it needs to clear in order to continue moving upwards.

The short-term support levels are at 18460, which is the first line of defense, and 18200 to 18000, the most important support below which the trend changes to the downside.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of The Economic Times. )


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