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BY A STAFF REPORTER:
Yesterday Nifty started the day with higher opening at 16275 with initial low at 16261 then gain extended upto all time high 16359 but failing to hold 16350 corrected vertically. Erased not only initial gain but also corrected upto 16202 but Nifty again respected the support level of 16200 as expected and we witnessed good pullback from the same level. In last leg of the session Nifty bounced and High printed at 16294, almost 62% day’s fall recovered. Nifty Finally settled at 16280 up by 22 points and formed a Doji candle pattern on the daily chart for the second consecutive day which signals indecision in the markets.
Technically, Nifty has been trading in a range for last 5 consecutive sessions and this range is almost 200 points 16160 to 16360. Though candle is Doji and after well recovering still did not close above the 16300 levels but last candle was higher bottom & higher top and closing above 5 dma 16265 which indicates bullish strength in the counter.
But amid volatility as long as Nifty maintains this range bound move then trader’s better strategies are cautious at higher ends around 16360 & intraday basis go for sell on rally and similarly buy on dips near support 16200 <+/- 20/25 points >
Current Consolidation phase :- 16160 to 16360.
On the Upside:-
For Intraday basis :-
Bulls need to hold 16240 <+/-10> & move above 16282 & for a move towards 16300/310—16326 & extended upto 16350/60. < cautious hurdles – reversal possible >
As a swing basis :-
If Nifty Bulls able to break out above 16360 & Specially above 16385 - Then Expected upper hurdles are :- 16418--16455—16515.
On the Down side
For Intraday basis :-
Bears will get active below 16225 & mainly below 16193 for a move back to 16160 & 16140.
As a swing basis :-
But if Nifty Bears Break down below 16160 & Specially Below 16140 - Then Expected Down side Lower Supports are :- 16098--16048 & 16000. Down side should not break 15962 & 20 DMA 15937.
Options data suggests a broader trading range in between 16000 and 16500 zones while an immediate trading range is between 16150 and 16400 zones.
India VIX moved up by 0.83% from 12.60 to 12.70 levels.