Indicating a downtrend continuation sample, an extended bear candle was fashioned on Nifty’s day by day chart as we speak. Unfavourable chart patterns like decrease tops and bottoms have been fashioned on the weekly chart and Nifty is at the moment on the best way right down to kind a brand new decrease backside of the sequence (under 17,353), mentioned Nagaraj Shetti, Technical Analysis Analyst at HDFC Securities.

He mentioned Nifty is now positioned close to the essential assist of 17,450-17,500 ranges and that there isn’t any signal of any reversal sample unfolding on the lows. A brand new swing low has been fashioned at 17,421 ranges.

Chart readers mentioned the present set-up is more likely to maintain Nifty beneath stress, with a possible draw back in direction of 17,150–17,200 over the brief time period. On the upper finish, essential resistance is positioned at 17,800.

What ought to merchants do? Right here’s what analysts mentioned:

Jatin Gedia, Technical Analysis Analyst, Sharekhan by BNP Paribas
Nifty is buying and selling across the essential assist trendline derived at by becoming a member of the previous few swing lows. On the hourly charts, a constructive divergence is growing and the hourly momentum indicator additionally has a constructive crossover. This means {that a} bounce is feasible. The bounce is more likely to be short-term in nature and is unlikely to end in a development reversal. The day by day momentum indicator has a unfavourable crossover, which is a promote sign. General, the downtrend remains to be intact and any bounce ought to be used as a chance to create contemporary brief positions. We anticipate the Nifty to focus on a stage of 17,350 from a short-term perspective.

Rupak De, Senior Technical Analyst at LKP Securities
Nifty has fallen again into the falling channel, heightening the probabilities of additional downsides. The 50DMA and 14DMA are in a bearish crossover. Additionally, the present worth is sitting nicely under the important near-term transferring averages, with the momentum oscillator RSI (14) slipping under the studying of fifty. The present set-up is more likely to maintain the Nifty beneath stress, with a possible draw back in direction of 17,150–17,200 over the brief time period. On the upper finish, essential resistance is positioned at 17,800.

Rahul Ghose, Founder & CEO – Hedged
Merchants ought to look to provoke lengthy straddles on the month-to-month expiry on this surroundings with weekly offsets, because the VIX is way too low to create brief straddles proper now from a premium perspective.

Amol Athawale, Deputy Vice-President – Technical Analysis, Kotak Securities
With the market in an oversold territory, we might see a fast pullback rally if the index trades above 17,500. Above which, the pullback formation is more likely to proceed until 17,600-17,750. On the flip facet, so long as the index is buying and selling under 17,500, the weak sentiment will proceed. Under which, the index might retest the extent of the 200-day SMA or 17,400.

(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Instances)