The Economic Times daily newspaper is available online now.

    Tech View: Nifty forms bullish candle on buying at lower levels. What traders should do on Tuesday

    Synopsis

    Fear gauge index India VIX moved up by 2.25% from 17.32 to 17.71 levels. Volatility spiked above 19 levels during the day and has been rising from the last four sessions, giving discomfort in the overall market sentiment.

    Tech View: Nifty forms bullish candle on buying at lower levels. What traders should do on TuesdayShutterstock.com
    Now, till it holds below 17777 zones, a bounce could be sold for the downside move towards 17500, then 17350 zones, whereas hurdles are placed at 17777 and 17850 zones, said Chandan Taparia of Motilal Oswal.

    Fear gauge index India VIX moved up by 2.25% from 17.32 to 17.71 levels. Volatility spiked above 19 levels during the day and has been rising from the last four sessions, giving discomfort in the overall market sentiment.

    Options data suggests a broader trading range between 17200-18200 zones ahead of the Budget and Fed meeting outcome, while an immediate trading range was between 17400-17800 zones.
    What should traders do? Here’s what analysts said:

    Rupak De, Senior Technical Analyst at LKP Securities
    Nifty has a crucial resistance placed at 17750–17800, which may limit further upsides in the near term. On the other hand, a decisive move above 17800 may induce a further rally towards 18000 or 18150. On the lower end, support is likely to remain at 17400–17350.

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities
    Occurrence of high volatility in the market (formation of doji) at the lows, placement of crucial support, and not showing any sharp weakness post downside breakout of range movement are all pointing towards a possible comeback of bulls from the lows. A sustainable move above 17800 is expected to confirm the trend reversal on the upside. The important event of the Union Budget of 1st Feb is going to set a fresh direction for the market in the short term.

    Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
    Nifty managed to hold above the 61.8% retracement of the Sept–Dec 2022 rise & 200 DEMA, which is near 17550. This makes today’s low of 17405 a crucial support. On the higher side, the index can test 17800, which will now act as resistance as per the principle of role reversal.

    Ajit Mishra, VP - Technical Research, Religare Broking
    Markets have been trying to hold the support zone of the long-term moving average (200 EMA). However, we expect the negative tone to continue until Nifty reclaims 18,000 decisively or forms a reversal pattern. Besides, volatility would continue to keep the traders on the edge, citing upcoming events. In such a scenario, it is prudent to restrict positions and prefer a hedged approach.

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