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BY A STAFF REPORTER:
Yesterday after a positive start a sharp decline in the first half from 16338 to 16162 & that was followed by a significant recovery in the second half upto 16290 just like day before yesterday. Nifty finally gave a Flat closing, settled at 16282 up by only 2.20 points.
Though Nifty formed a Reddish Hanging Man kind of pattern on the daily charts which resembles bearishness but it’s long lower shadow indicates short covering & smart buying from crucial 9 EMA support 16160 filling the GAP 16176-16146 partially & this bearish pattern to be negated if Nifty decisively crosses & stays above the upper edge of the current range 16360+.
Nifty Bulls defended themselves from the support 16200 to 16160 range for last Six trading sessions consecutive basis & lying in a brief consolidation phase in between 16160 to 16360. We may see further consolidation on Thursday due to weekly expiry, volatility will remain high.
At present, the Nifty has immediate resistance at 16360 levels while downside support shifted higher to 16160 levels (rounded).
Traders should prefer index majors and quality midcap for short-term bets until the broader market stabilizes.
On The Upside :-
Intraday basis Resistances are above 16295:- 16317—16340 & 16360.
For swing basis :-
Break out Bullish Move only above 16370 then in uncharted territory, projected upper hurdles are :-
16400--16440--16480. Major 16500/550.
On The Down side :-
Intraday basis supports are below 16260:- 16240--16194 & 16160.
For Swing basis:-
Break down move only below 16160 < 9 ema >/16146 GAP support:-
16126--16085--16037. Major 16000/15962.
Option data suggests a broader trading range in between 16000 to 16500 zones while an immediate trading range in between 16150 to 16400 zones.
India VIX moved up marginally by 0.10% from 12.70 to 12.71 levels. Lower volatility is favourable for Bulls and buying interest comes from lower levels.