Tech View: Nifty breaks higher low pattern of last 7 days. What traders should do next week

economictimes.indiatimes.com:

Nifty on Friday ended 165.5 points lower to form a long bear candle with a long upper shadow on the daily charts. On the weekly scale, a small bodied bullish candle was seen where the index has been forming higher lows for the last 15 weeks. 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