Tech View: Nifty shows support at 50-EMA. What traders should do on Wednesday

economictimes.indiatimes.com:

Nifty on Monday ended flat, but formed a bullish hammer pattern with a longer lower shadow on the daily chart where it took support at its 50-EMA. As the RSI on the daily chart demonstrated a bearish crossover, with its value dropping below 50, it could be signs of a weakening trend.

Now it has to hold above 19,420 zones to witness a bounce towards 19,560 then 19,620 zones whereas support exists at 19,300 then 19,250 zones, said Chandan Taparia of Motilal Oswal. India VIX was up by 4.12% from 11.52 to 11.99 levels.

Volatility spiked to 12.75 during the day but later cooled off thus paving way for the bulls at support zones. Option data suggests a broader trading range between 19,000 and 19,800 zones while an immediate trading range between 19,200 and 19,600 zones.What should traders do? Here’s what analysts said:Rupak De, Senior Technical analyst at LKP SecuritiesIf Nifty falls below the 19,250 mark, it might incite a corrective movement towards the 19,100-19,150 range in the near future.

Conversely, resistance can be identified at the 19,550 level on the higher side.Shrikant Chouhan, Head of Research (Retail), Kotak SecuritiesTechnically, after an early morning selloff, the Nifty took support near the 50 day SMA (Simple Moving Average) and bounced back sharply towards the end. For the day traders now, 19,350 would act as a trend decider level, above which the pullback rally could be seen which would drive the market up till 19,500-19,560.

On the flip side, a fresh selloff could be seen only after the dismissal of 19,350, and below the same, the index could retest the level of 19300-19250 or 50 day SMA.Ajit Mishra, Religare BrokingNifty respected the support zone of the short term moving average i.e. 50 EMA, after