The momentum oscillator RSI (14) found support near its prior breakout levels and closed at the 60 levels with a bullish crossover on the daily time frame.
India VIX was up by 0.32% from 11.63 to 11.66 levels. Volatility spiked above 12 zones but later sunk and has overall dried up to consistently hover at its lower zones.
Options data suggests a shift in the trading range between 17500 to 18000 zones, while an immediate trading range between 17600 to 17900 zones.
Chartists point out that the recent formation of bearish engulfing patterns on daily and weekly time frames remains intact. A decisive move above 17865 levels is expected to negate this bearish pattern and that could probably open a sharp upside for the market ahead, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
Nifty took support at 17,613, reversed from the day low, and closed at the day high, which is strongly positive for tomorrow as per the current closing index looks positive for 17,800/17,850 levels, and downside support stands at 17,680-17,620.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
On the daily and intraday charts, Nifty formed a reversal formation and on daily charts, it also formed a largely positive reversal candle. For bulls now, 17700-17650 would act as a key support zone. Above this, the index could retest the level of 17825-17850. On the flip side, below 17650, traders may prefer to exit from the trading long positions.Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty is showing signs of an upside breakout of the small narrow range. But a decisive upside breakout could only occur on Nifty surpassing the crucial area of 17865 levels in coming sessions. That could possibly result in a sharp positive reversal for the Nifty. Immediate support is at 17600 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)