Tech View: Nifty forms green candle to rise above short-term average. What traders should do on Thursday expiry

Rising above both the short-term and near-term moving averages, the headline equity index Nifty on Wednesday formed a green candle after two days of consolidation. Now, it needs to hold above 17850 zones for an up move towards 17950, then 18081 zones, whereas supports are placed at 17777 and 17650 zones, said Chandan Taparia of Motilal Oswal.

The RSI momentum oscillator has entered a bullish crossover and is rising.

Fear gauge index India VIX moved down by 3.84% from 14.12 to 13.57 levels. Volatility has overall fallen down from higher levels in the last seven sessions and now needs to hold below 14 zones for market stability.

Options data suggests a broader trading range between 17400 to 18200 zones, while an immediate trading range between 17700 to 18050 zones.

What should traders do? Here’s what analysts said:

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Intraday volatility may continue due to uncertainty in global markets and worries that central banks in key economies may maintain a hawkish stance going ahead, which could trigger strong bouts of sideways movement.

17950 could be the next profit booking zone for bulls. As long as the index is trading above 17750, the uptrend wave will continue. Above the same, the market could move up to 18150. On the flip side, below 17750, the uptrend would be vulnerable.

Ajit Mishra, VP - Technical Research, Religare Broking
With all the major events behind us, the performance of the global indices combined with earnings will dictate the trend ahead. This rebound has certainly eased pressure, but a decisive close above 17900 in Nifty is critical for any sustained recovery. Meanwhile, we reiterate our preference for IT, FMCG, and select banking and auto pack and suggest focusing on identifying opportunities from these sectors.

Rohan Patil, Technical Analyst, SAMCO Securities
On the daily scale, the index is trading within the falling channel pattern and is hovering near its 9 & 21 EMA, which is placed at 17,785 & 17,868 levels, respectively. Nifty is still moving within the big Budget day candle from the past five trading sessions.

Technically, Nifty is gathering momentum, reviving bullish hopes, for a test of near-term resistance at 18,000 levels. On the lower side, immediate support for the prices is placed at 17,650 levels.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
If we have to surpass the sturdy wall of 17900–18000, banking heavyweights should contribute convincingly. Above this, the market will come out of the recent congestion zone, and we may see good broad-based participation thereafter. On the flipside, 17800 followed by 17700 should now be considered immediate support. The remaining two sessions of the week would be quite crucial as it is likely to dictate the near-term direction of our market.

Rupak De, Senior Technical Analyst at LKP Securities
On a larger scale, we can see that the index has been hovering within a falling channel, with the index moving toward the upper band of the said channel. Over the near term, the trend may remain positive, with the potential to reach 18000. A decisive breakout above the 18000 level may induce a rally towards 18350-18400. On the lower end, support is visible at 17650.

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