Now, it has to hold above 19,300 zones to extend the move towards 19,420 and fresh all-time high levels of 19,525 zones while on the downside support is intact at 19,250 and 19,100 zones, said Chandan Taparia of Motilal Oswal.
India VIX was down by 2.60% from 11.84 to 11.53 levels. Volatility sunk lower and is hovering near its lower band, which may support the bulls near to immediate support zones.
Option data suggests a broader trading range between 19,100 and 19,700 zones while an immediate trading range between 19,200 and 19,500 zones.
Chart readers note that the positive pattern like higher tops and bottoms is intact as per daily chart and present weakness in the market could be considered as a higher top reversal of the pattern. The hourly RSI has shown a bearish crossover, adding to the negative outlook.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The immediate supports like ascending resistance line as per change in polarity and daily 10-period EMA are placed around 19,200 levels, which could be an immediate cluster support for the market on further weakness ahead. Any upside bounce from here could encounter strong hurdles at 19,425 levels.Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities
Nifty Futures Open Interest (OI) data indicated profit booking of long positions. The Put-Call Ratio (PCR), a sentiment indicator, fell to 1.35 from 1.45 a day earlier. Interestingly, last time when the Nifty made an all-time high of 18,888 on 1st December, 2022, PCR was at 1.46.
In Bank Nifty heavy call writing was observed at 45,000 Strike. It has taken support from the 38.2% Fibonacci Retracement of 44,846 drawn from the low of 43,520 made on 23rd June to the high of 45,656 made on 4th July. A break below the 38.2% retracement level can take Bank Nifty to 44,500, where its next visible support is placed.
Amol Athawale, Vice President – Technical Research, Kotak Securities
As long as the index is trading below 19,450, the correction wave is likely to continue. Below the same, the market could slip till 19,250-19,200. On the other hand, fresh uptrend is possible only after the dismissal of 19,450. Above which, the market could move up till 19,550-19,625. Contra traders can take a long bet near 19,200 with a strict support stop loss at 19,150. For Bank Nifty, 45,000 would act as a sacrosanct level, below which it could slip till the 20-day SMA (Simple Moving Average) or 44,300-44,200. On the other side, above 45,000 it could move up till 45,500-45,700.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
