Tech View: Nifty stuck in tight range. What traders should do on Wednesday

economictimes.indiatimes.com:

Nifty on Tuesday ended about 26 points lower to form a small-bodied bearish candle with a long lower shadow on the daily chart. The pattern indicates that buying was visible at base but momentum and follow-up was missing. Now it has to hold above 19560 zones for an up move towards 19700 and 19800 zones whereas supports are placed at 19500 and 19420 zones, said Chandan Taparia of Motilal Oswal.

The negative chart pattern like lower tops and bottoms is intact as per the daily timeframe chart and current chart pattern indicates a possibility of a new lower top of the sequence. India VIX was up by 2.03% from 11.10 to 11.32 levels. Volatility inched higher and caused some discomfort to the bulls, but is hovering at overall lower zones.

Option data suggests a broader trading range in between 19000 and 20000 zones, while an immediate trading range in between 19300 and 19700 zones.What should traders do? Here’s what analysts said:Nagaraj Shetti, Technical Research Analyst, HDFC SecuritiesThe short-term trend of Nifty remains choppy. A move below 19500 levels could open further weakness down to the next lower supports of 19400-19350 levels. A decisive move above the hurdle of 19700 is likely to bring sharp upside momentum in the market.Shrikant Chouhan, Head of Research (Retail), Kotak SecuritiesTechnically, after a reversal formation, the market has been witnessing a range-bound activity near the 20-day SMA (Simple Moving Average).