Tech View: Nifty bearish candle. Trade Tuesday?


Headline index On Monday, Nifty formed a daily bearish candle with a longer lower shadow, signalling buying on falls, but there was no follow-through into higher zones. Now, it must hold above 17,777 zones to advance to 17,888, then 17,950 zones, while 17650 and 17500 zones serve as supports, according to Chandan.

The India VIX fear index increased by 7.38 percent from 12.75 to 13.68. Volatility reversed its lower high formation of the previous seven trading sessions and must now subside for the market to regain equilibrium.

Options data suggests that there will be a bigger trading range between 17400 and 18200, with an immediate trading range between 17650 and 17950.

What should businessmen do? Here’s what the analysts had to say:

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Shirkant Chouhan is the Head of Retail Equity Research at Kotak Securities.
Now, 17,850 would be a crucial resistance zone for traders. Below that level, the Nifty might fall to 17650-17600. A new uptrend rise, on the other hand, is likely only until 17850 is broken, after which the market may reach 17925-17950.

Jatin Gedia, Technical Research Analyst, Sharekhan, as reported by
Since last week, Nifty has been range-bound, and this is expected to continue until we see a strong move above the zone between 17850 and 17900. The daily momentum indicator has a positive crossing, indicating a buy signal and indicating that this dip should be bought. We expect the Nifty to test the top of the downward-sloping channel (18,100) in the near future.

Ajit Mishra, Vice President, Technical Research, Brokering
The decline in the index has put the bulls on the defensive, but they are still in the game. A conclusive closure below 17650 on the Nifty might shift the bias towards a further decline; otherwise, the range-bound trend would persist. In the meantime, we want to make sure you know that we are still committed to stock-specific opportunities and to having positions on both sides.

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