Tech View: Nifty forms Inside Bar candle on daily chart. What traders should do on Thursday expiry

economictimes.indiatimes.com:

Nifty on Wednesday ended 9.5 points higher at 19,398.50 to form an Inside Bar candle on the daily chart and hint at consolidation. Now, it has to continue to hold above 19,300 zones to extend the move towards 19,450 and 19500 zones, while on the downside, support is intact at 19,250 and 19,100 zones, said Chandan Taparia of Motilal Oswal. India VIX was up by 1.56% from 11.70 to 11.88 levels.

Volatility was on the rise and made the index consolidate in a range with slight profit booking. Options data suggests a broader trading range between 19100 to 19600 zones while an immediate trading range between 19250 to 19500 zones. The hourly Bollinger bands are contracting, indicating rangebound price action.What should traders do? Here’s what analysts said: Nagaraj Shetti, Technical Research Analyst, HDFC Securities The overall uptrend status of the Nifty remains intact.

Though the market placed at new highs, the selling pressure has not been emerging from near the hurdle. If such a pattern continues for the next 1-2 sessions without showing any further damages, then that could eventually result in a sharp upside bounce in the market. Immediate support is at 19,300 levels.Shrikant Chouhan, Head of Research (Retail), Kotak Securities Technically, as long as the index is trading between 19320 -19435, the narrow-range activity is likely to continue.

For bulls, 19435 would be the immediate breakout level. Above which, the market could rally till 19500-19525. However, below 19320, the selling pressure is likely to accelerate and could slip till 19250-19200.