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    Tech View: Nifty charts show bullish reversal of price trend. What should traders do on Thursday expiry day

    Synopsis

    India's VIX moved down by 4.39% from 13.45 to 12.86 levels. Volatility cooled off from its highs and paved the way for the strong comeback of bulls.Chart readers said Nifty closed above its 9 & 21 EMA, which is positive for the short term.Options data suggests a broader trading range between 17700 to 18300 zones, while a shift in an immediate trading range between 17850 to 18200 zones

    Tech View: Nifty charts show bullish reversal of price trend. What should traders do on Thursday expiry dayiStock
    Indicating the return of bulls on Dalal Street, Nifty has formed two back-to-back green candles on the daily charts. Ahead of the Thursday expiry, the index also gave the highest closing of the last 15 sessions. Now, it needs to hold above 17971 zones for an up move towards 18181, then 18250 zones, whereas supports are at 17888 and 17777 zones, said Chandan Taparia of Motilal Oswal.

    India's VIX moved down by 4.39% from 13.45 to 12.86 levels. Volatility cooled off from its highs and paved the way for the strong comeback of bulls.

    Chart readers said Nifty closed above its 9 & 21 EMA, which is positive for the short term.

    Options data suggests a broader trading range between 17700 to 18300 zones, while a shift in an immediate trading range between 17850 to 18200 zones.

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

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities
    The short-term trend of Nifty continues to be positive. The upside breakout of important resistance of the down trend line and overall positive chart setup could result in further upside towards the next key resistance of 18250 leels in the short term. Immediate support is placed at 17850 levels.

    Ajit Mishra, VP - Technical Research, Religare Broking
    We reiterate our positive view of the market. However, intermediate consolidation or profit-taking on the global front and restricted participation within the index heavyweights could keep the momentum in check. We thus recommend staying selective and preferring exposure to the counters, which are leading from the front.

    Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
    With the daily and hourly momentum indicators having a positive crossover, the up move is likely to gather speed on the upside. Expansion of hourly Bollinger bands and prices moving along the upper band suggests that the positive momentum is likely to continue. On the way up, Nifty is likely to target the zone of 18100 – 18120, which coincides with the 50% Fibonacci retracement level (18120) of the December 2021 to February 2022 decline. Thus, all parameters suggest further upside in the index.

    Rupak De, Senior Technical Analyst at LKP Securities
    Nifty has given a falling channel breakout on the daily timeframe, suggesting a bullish reversal of the price trend. The trend looks positive now for the near term, with the 14 DMA sitting below the price. The momentum indicator RSI is in support of the price trend, with a current reading above 50. Over the near term, the index may move up towards 18350–18400. On the lower end, support is placed at 17950.

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



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    (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
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