Tech View: Market breadth indicates a strong bullish bias. What traders should do on Wednesday
Nifty on Tuesday ended 83.5 points higher to form a small positive candle on the daily chart with a long upper shadow.RSI indicated a bearish crossover, suggesting a potential decline in the market. Now, Nifty has to hold above 19400 zones to extend the move towards fresh all-time high levels of 19525 and 19600 zones, while on the downside, support is intact at 19333 and 19250 zones, said Chandan Taparia of Motilal Oswal. India VIX was down by 3.90% from 11.46 to 11.01 levels.
Volatility sunk lower and is hovering near its lower band, which may support the bulls near-immediate support zones. Options data suggests a broader trading range between 19100 to 19700 zones, while an immediate trading range between 19300 to 19550 zones. What should traders do? Here’s what analysts said:Rahul K Ghose, Founder & CEO – HedgedThe Nifty derivative data is hinting towards an expiry above 19300 for both this weekly expiry and the July monthly expiry.
The last few days of profit booking quickly turned around as the 19400 call writers had to run for cover this morning with the gap-up opening. On the upside, Nifty will have to cross and close above its previous high around 19520 to start its next up-move. This leg of the up-move however will be slow and not as fast-paced as the move above 18700.
On Bank Nifty, the level to break on the upside is 45200 for a further up-move to happen.Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel OneTechnical speaking, the undertone suggests a strong bullish bias in the market, evident by the market breadth. Also, the longevity of the index near the higher levels indeed depicts the resilience of bulls to continue the northward journey.
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