Tech View: Nifty forms shooting star candle. What should traders do on Wednesday

Headline equity index Nifty on Monday formed a shooting star kind of candlestick pattern on the daily chart, suggesting a bearish reversal.

Now, it has to hold above 17650 zones for an up move towards 17,777, then 17850 zones, whereas supports are placed at 17535, then 17442 zones, said Chandan Taparia of Motilal Oswal.

India VIX moved up by 0.72% from 12.18 to 12.26 levels. Volatility slightly moved up for the day, but overall it has been cooling off from the last few sessions and paving the way for bulls at support zones.

Options data suggests a broader trading range between 17400 to 17850 zones, while an immediate trading range between 17550 to 17850 zones.

The market would be shut on Tuesday for Holi and would re-open on Wednesday.

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

Rupak De, Senior Technical Analyst at LKP Securities
On the daily chart, Nifty closed within the falling channel following an intraday breakout from the said channel. A fall below 17650 may trigger a steep correction in the market. While a sustained trade above 17750 may induce buying in the market.

Ajit Mishra, VP - Technical Research, Religare Broking
Buoyancy on the global front is helping the index to stage recovery. However, multiple hurdles are capping the upside on every uptick. We thus reiterate our view to continue with a stock-specific trading approach and prefer sectors that are showing resilience.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Technically, 17800-17900 could be the immediate profit-booking zone for the bulls, while 17650-17600 would be the sacrosanct support zone for the traders. However, below 17,600, the uptrend would be vulnerable.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty continues to be positive. Having placed at the crucial overhead resistance of 17800 levels, there is a possibility of further consolidation or minor downward correction in the short term before showing further upmove. Immediate support is at 17600 levels.

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