Nifty formed a long bear candle on the daily charts, indicating a downside breakout of the smaller range movement of the last few sessions. On the weekly timeframe, an Inside Bar was formed on the charts. Now till it holds below 19,500 zones, weakness could be seen towards 19,300 then 19,250 zones whereas hurdles are placed at 19,550 then 19,650 zones, said Chandan Taparia of Motilal Oswal.
India VIX was up by 1.07% from 11.40 to 11.52 levels. Volatility inched higher and caused some discomfort to the bulls. Option data suggests a broader trading range between 19,000 and 19,800 zones while an immediate trading range between 19,300 and 19,600 zones.What should traders do? Here’s what analysts said:Rupak De, Senior Technical analyst at LKP Securities Nifty continues to exhibit a bearish trend as it remains below the 21-day Exponential Moving Average (21EMA).
The Relative Strength Index (RSI) is also indicating a bearish crossover. In the short term, there's a possibility that the index might decline towards the 19,300 level. On the upside, there's a resistance level situated at 19,500.Amol Athawale, Vice President — Technical Research, Kotak Securities As long as the index is trading below 19,560, the weak texture is likely to continue and could retest the level of 19,300-19,250.
On the flip side, above 19,560, the chances of hitting 19,670-19,700 levels are bright. For Bank Nifty, it is trading below the 50-day SMA and holding a lower top formation on daily charts, which is largely negative. For traders, the 50-day SMA or 44,700 would act as a key level to watch out for and below the same it could slip till 44,000-43700.
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