Tech View: Nifty charts show consolidation between 18,000 & 18,400. What should traders do on Tuesday?

Headline fairness index as we speak shaped a bullish candle on the each day charts and negated its decrease highs formation of the final 4 classes. Now it has to carry above 18281 zones, for an up transfer in direction of 18400 and 18442 zones whereas on the draw back helps exist at 18181 and 18081 zones, mentioned Chandan Taparia of Motilal Oswal.

India VIX was up 2.20% from 12.30 to 12.57 ranges. Volatility was barely excessive through the day however total decrease ranges continued comforting the bulls at help zones. Choice information suggests a broader buying and selling vary between 18,000 and 18,500 zones whereas a direct buying and selling vary between 18,150 and 18,450 zones. The each day momentum indicator has a unfavorable crossover, which is a promote sign and means that there might be consolidation going forward as with out the help of the momentum indicator it will be troublesome for costs to maintain at greater ranges, chartists mentioned.

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

Rupak De, Senior Technical at LKP Securities
Nifty help on the 21-day Exponential Transferring Common (EMA), which halted its decline. Nonetheless, the Relative Energy Index (RSI) is in a bearish crossover, indicating weak momentum. The speedy help degree for the index is at 18,200. If it manages to maintain its place above 18,300, there’s a risk of transferring in direction of the resistance degree at 18,500.

Jatin Gedia, Technical Analysis Analyst, Sharekhan by BNP Paribas
On the each day charts, we are able to observe that the rally which began from the 20-day transferring common (18,115) has continued as we speak as effectively. On the upside, the zone of 18,350-18,375 the place essential Fibonacci retracement ranges are positioned can act as speedy hurdles from a short-term perspective. On the draw back, the important thing hourly transferring averages positioned within the vary 18,210 – 18,250 shall act as a cushion and supply help in case of a slide. Total, we nonetheless consider that the index is in a consolidation mode and the vary of consolidation is prone to be 18,000 – 18,400.

Shrikant Chouhan, Head of Fairness Analysis (Retail), Kotak Securities
It’s believed that the index has accomplished one leg of a pullback rally and is presently buying and selling close to an essential retracement resistance zone. Total, the market has proven constructive indicators with a powerful bounce again, supported by the efficiency of particular sectors. Nonetheless, warning is suggested across the essential retracement resistance zone, and merchants ought to monitor the degrees talked about for potential market actions. Nifty having sturdy help at 18200 vary whereas having resistance on greater aspect at 18375 to 18400 vary.

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