The Economic Times daily newspaper is available online now.

    Tech View: Nifty ends Feb series with a red candle. What traders should do on Friday

    Synopsis

    Fear gauge index India VIX moved down 3.30% from 15.59 to 15.07 levels. Volatility slightly fell for the day but overall has been rising from the last four sessions. Option data suggests a broader trading range between 17,200 and 18,000 zones and an immediate trading range between 17,350 and 17,850 zones

    Tech View: Nifty ends Feb series with a red candle. What should traders do on FridayAgencies
    Headline index Nifty, which has been making lower-highs and lower-lows for the last five trading days, today formed a bearish candle on the daily charts on expiry of February F&O series.

    Now till it remains below 17,620 zones, weakness could continue towards 17,442 and 17,350 zones whereas hurdles are shifting lower at 17,620 then 17,777 zones, said Chandan Taparia of Motilal Oswal.

    Fear gauge index India VIX moved down 3.30% from 15.59 to 15.07 levels. Volatility slightly fell for the day but overall has been rising from the last four sessions. Option data suggests a broader trading range between 17,200 and 18,000 zones and an immediate trading range between 17,350 and 17,850 zones.

    On the daily charts, Nifty reached the daily lower Bollinger band and was also trading around a rising trendline support derived by joining the previous two swing lows, which makes a case for a pullback over the next few trading sessions. The hourly momentum indicator has a positive crossover which is a buy signal, chart readers said.

    What should traders do? Here’s what analysts said:

    Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
    Any bounce is likely to face resistance around 17,665 – 17,740 where resistance in the form of the key hourly moving averages are placed. Overall, the trend continues to be negative, and, on the downside, we expect the Nifty to target levels of 17,300 from a short-term perspective.

    Rupak De, Senior Technical Analyst at LKP Securities
    Going ahead, the low of 17,455 is likely to act as immediate support for the falling Nifty. A decisive fall below 17,450 may trigger the resumption of the fall. In that case, it may fall down towards 17,200–17,150. However, failure to break down may induce a recovery towards 17,750–17,850, where the upper band of the falling channel lies.

    Rahul Ghose, Founder & CEO – Hedged
    The March Series of Nifty is seen having huge OI concentration at the 17,500 PE and the 17,000 PE strikes indicating that traders are not expecting a very deep correction in the market. What's more important is that the In-the-money (ITM) 17,600 PE also saw shorting today, which eventually supported Nifty from falling further and outperforming Nifty Bank for most of the day. The 17,500 strikes also saw short straddles being created for the next month, although the volume for this was not very high.

    All these factors indicate that the start of the series is on a neutral to bearish mode and the downtrend will only get confirmed once the 17,350 level has been breached decisively.

    Ajit Mishra, VP - Technical Research, Religare Broking
    Though we may see some respite after the recent fall, the tone is likely to remain negative citing subdued cues. Apart from banking and financials, other sectors are also facing the heat now. Considering the scenario, participants should continue with the “sell on rise” approach until we see some signs of reversal.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in