Tech View: Is range-bound Nifty scary? What traders ought to do on Wednesday

Nifty bulls managed to guard the 200-DMA at 16,992.5 on a closing foundation because the headline fairness index ended simply 9 factors decrease above the psychologically-important stage of 17,000. On the each day charts, a unfavourable candle, positioned beside the same unfavourable candle of the earlier session, was shaped on Tuesday.

Technical analysts say this sample alerts broader range-bound motion out there with weak bias. “This sample additionally signifies a scarcity of energy within the intraday upside bounce. This isn’t a great signal and one could count on additional weak spot within the brief time period,” Nagaraj Shetti of

Securities stated.

“Nifty shaped a Bearish candle on the each day scale and has been making decrease highs – decrease lows from the final 5 buying and selling classes. Now, until it stays under 17,166 zones, weak spot could also be seen in direction of 16,800 and 16,666 zones whereas hurdles are positioned at 17,166 and 17,250 zones,” stated Chandan

of .

Analysts stated the feel of the market continues to be sell-on-rise.

What ought to merchants do? Right here’s what analysts stated:

Shrikant Chouhan, Head of Fairness Analysis (Retail), Kotak Securities
Decrease prime formation on the intraday charts and bearish candle on each day chart signifies continuation of weak spot within the close to time period. Nonetheless, momentum indicators recommend a powerful chance of a pullback rally from the present ranges. We’re of the view that the bearish sentiment out there continues to be intact and a contemporary pullback rally is feasible if the index succeeds to commerce above 200 day SMA (Easy Shifting common) or 16,940/56,950. Above this, the index may retest the extent of 17,150-17,200/57,500-57,700.

On the flip facet, under 16,940/56,950, it may slip until 17,850-17,800/56,600-56,500. The intraday texture of the market is non directional, therefore stage primarily based buying and selling can be the perfect technique for the day merchants.

Rupak De, Senior Technical Analyst at

The momentum indicator is in a bearish crossover. The pattern stays weak. Nonetheless, the proximity to the essential assist could induce a pullback out there. On the upper finish, resistance is seen at 17,150-17,200. Above 17,200, the Nifty50 could transfer in direction of 17,500. Then again, a decisive fall under 16,950 could set off panic out there.

Prashanth Tapse, Senior VP (Analysis), Mehta Equities
Technically, the most important assist to look at on Nifty50 can be at 16,907. So long as 16,907 assist is held, there’s a brilliant probability that the index may bounce to 17,347 after which on the 17,727 mark.

Chandan Taparia, Motilal Oswal Monetary Companies
On the Choices entrance, Most Name OI was at 18,000-17,500 strike, whereas Most Put OI was at 16,000-17,000 strike. Name writing was seen at 17,100-17,200 strikes whereas minor Put writing was seen at 16,900-16,600 strikes. Choices information suggests a broader buying and selling vary in between 16,600 to 17,500 zones because of larger volatility whereas a right away vary in between 16,800 to 17,300 zones.

(Disclaimer: Suggestions, options, views, and opinions given by the specialists are their very own. These don’t characterize the views of Financial Instances)