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    Tech View: Nifty forms long bear candle on daily charts. What traders should do on Friday

    Synopsis

    Now, till it holds below 18,018 zones, bounce could be sold for the down side move towards 17,850 and 17,777 zones whereas hurdles are placed at 18,018 and 18,081 zones, said Chandan Taparia of Motial Oswal.

    Tech View: Nifty forms long bear candle on daily charts. What traders should do on FridayAgencies
    While closing below the 18,000 mark, headline index Nifty today formed a long bearish candle on the daily charts on monthly F&O expiry day. It has been trading in a broader range of 17,777 to 18,250 zones for the last 20 trading sessions.

    Now, till it holds below 18,018 zones, bounce could be sold for the down side move towards 17,850 and 17,777 zones whereas hurdles are placed at 18,018 and 18,081 zones, said Chandan Taparia of Motial Oswal.

    Fear gauge index India VIX was up 7.28% from 13.66 to 14.65 levels. Volatility spiked above 15 zones and paved the way for bears in the market, creating discomfort.

    Option data suggests a broader trading range between 17,500 and 18,500 zones due to upcoming events while an immediate trading range between 17,700 and 18,200 zones.

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

    Rupak De, Senior Technical Analyst at LKP Securities
    On the daily timeframe, the index remained below the 50-day exponential moving average. Besides, the index remained below the 50-day exponential moving average, which confirms the bearish trend. On the lower end, however, the correction was limited to the upper band of the falling wedge pattern on the daily chart. The sentiment looks very weak, with the RSI in a bearish crossover. However, a further correction may occur if the price falls below 17,840. On the higher end, resistance is placed at 18,000.

    Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
    The larger structure shows that the index is still in the range, which it has been witnessing for the last one month. It recently tested the upper end of the range and thereon it has tumbled down towards the lower end i.e. 17,800-17,760. This zone has been acting as a strong support & is likely to provide support this time as well. Thus unless the level of 17,760 breaks, Nifty can witness recovery within the short term range.

    Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

    Technically, after a double top formation the market witnessed a sharp correction. On daily charts, Nifty has formed a long bearish candle and closed below the 18,000 mark, which is broadly negative. As long as the index is trading below 18,000, the weak sentiment is likely to continue and below the same the index could retest the level of 17,800. Any further down side could drag the index till 17,700. On the flip side, above 18,000, the index could move up to 18,050-18,100 levels.

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



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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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