Tech View: Nifty forms long bull candle on weekly charts. What should traders do next week?

Now, Nifty has to continue to hold above 18250 zones to witness an up move towards 18400 and 18442 zones while on the downside supports are placed at 18181 and 18081 marks, said Chandan Taparia of Motilal Oswal.

India VIX fell by 2.78% from 13.22 to 12.85 levels. Volatility dropped after a surge of the last five sessions, which is giving comfort to bulls for a buy on decline stance in the market. Option data suggests a broader trading range between 17900 and 18500 zones while an immediate trading range between 18150 and 18450 zones.

The Relative Strength Index (RSI) showed a bullish crossover, indicating potential upward momentum in the market.

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

Rahul Ghose, Founder & CEO, Hedged

For the monthly expiry of May, the range remains between 18000 and 18500 and the index will not find it very easy to sustain over the 18500 mark. There has to be a decisive break over 18550 for this level to get taken out. For this week as well the, texture remains buy on dips and any fall below 18200 to the 18000 level should be considered as a buying opportunity.

Amol Athawale, Technical Analyst (DVP), Kotak Securities
Technically, after a strong uptrend rally, Nifty is comfortably trading above the 10-day SMA (Simple Moving Average) and it is also holding a higher bottom formation which supports further uptrend from the current levels. On weekly charts, the index has formed a long bullish candle indicating the continuation of the uptrend. As long as the index is trading above the 10-day SMA or 18200 the positive sentiment will continue. Above 18200, the index is likely to move till 18450-18550. On the flip side, bulls may prefer to exit from the long positions if the index trades below 18200 and on further downside it may slip till 18000.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty continues to be range-bound with a positive bias. A decisive move above 18400 levels could open the next upside of around 18600-18700 levels in the near term. Any weakness from here could find support around 18180-18200 levels.

Rupak De, Senior Technical Analyst at LKP Securities
Closing above the significant level of 18200, the Nifty sustained its position, which is considered a positive sign for the market. As long as the index remains above this level, the overall trend is expected to remain positive. Looking ahead, it is important to keep an eye on the resistance level at 18400. If the Nifty manages to surpass this level, it could further reinforce the positive trend. However, if the index falls below the support at 18200, it may signal a potential weakness in sentiment and raise concerns about the ongoing bullish outlook.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the index is still trading within the range of 18300 – 18350. It surpassed the previous week high (18268) on 8th May 2023. However, it was unable to carry on the positive momentum beyond 18350 – 18400 resistance zone. On the way down the zone of 18220 – 18190 where support parameters in the form of the 40-hour moving average and the hourly lower Bollinger band are placed to absorb the selling pressure. Thus, the Nifty is stuck between 18400-18190 for the past four trading sessions. Until Nifty decisively breached this range on either side the consolidation is likely to continue.

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