India VIX was up 2.20% from 12.30 to 12.57 levels. Volatility was slightly high during the day but overall lower levels continued comforting the bulls at support zones. Option data suggests a broader trading range between 18,000 and 18,500 zones while an immediate trading range between 18,150 and 18,450 zones. The daily momentum indicator has a negative crossover, which is a sell signal and suggests that there could be consolidation going ahead as without the support of the momentum indicator it would be difficult for prices to sustain at higher levels, chartists said.
What should traders do? Here’s what analysts said:Rupak De, Senior Technical at LKP SecuritiesNifty support at the 21-day Exponential Moving Average (EMA), which halted its decline. However, the Relative Strength Index (RSI) is in a bearish crossover, indicating weak momentum. The immediate support level for the index is at 18,200. If it manages to sustain its position above 18,300, there is a possibility of moving towards the resistance level at 18,500.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP ParibasOn the daily charts, we can observe that the rally which started from the 20-day moving average (18,115) has continued today as well. On the upside, the zone of 18,350-18,375 where crucial Fibonacci retracement levels are placed can act as immediate hurdles from a short-term perspective. On the downside, the key hourly moving averages placed in the range 18,210 – 18,250 shall act as a cushion and provide support in case of a slide. Overall, we still believe that the index is in a consolidation mode and the range of consolidation is likely to be 18,000 – 18,400.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak SecuritiesIt is believed that the index has completed one leg of a pullback rally and is currently trading near an important retracement resistance zone. Overall, the market has shown positive signs with a strong bounce back, supported by the performance of specific sectors. However, caution is advised around the important retracement resistance zone, and traders should monitor the levels mentioned for potential market movements. Nifty having strong support at 18200 range while having resistance on higher side at 18375 to 18400 range.
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