March 21, 2023

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nifty50: Tech View: Nifty charts show bears in control. What traders should do on Friday

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NEW DELHI: As Nifty ended below the psychological 18000-mark, the headline equity index on Thursday formed a bearish candle on the daily charts with a long lower shadow, indicating that downside continuation pattern but buying at lower levels. Now, it has to cross and hold above 18018 zones for an up move towards 18123 and 18181 zones, whereas support exists at 17850, then 17777 zones, said Chandan of .

Analysts said today’s intra-day recovery shows that buying is expected to emerge from near the lower support of around 17750-17800 levels.

The daily momentum indicator was in a bearish crossover, suggesting weak price momentum for the near term.

Fear gauge index India VIX was down by 1.43% from 15.19 to 14.98 levels. Volatility needs to cool down below 14 zones for stability to resume.

Options data suggests a broader trading range between 17700 to 18500 zones, while an immediate trading range between 17850 to 18250 zones.

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

Nagaraj Shetti, Technical Research Analyst, Securities

Negative chart patterns like lower tops and bottoms continued on the daily chart, and the Nifty is expected to revisit the recent swing lows of 17775 levels in the short term. Any upside bounce from here could encounter resistance around 18100 levels.

Rupak De, Senior Technical Analyst at

Volatility may continue over the short term with a predominant weakness. On the lower end, support is visible at 17800. On the higher end, resistance is visible at 18250, above which, a bullish reversal may happen.

Rohan Patil, Technical Analyst, SAMCO Securities

Nifty formed a Falling three-candlestick pattern, immediately followed by another bearish candlestick pattern termed ‘dark cloud cover’. It suggests the bears are in control.

Presently the immediate support for the Nifty is placed at 17,900 levels. However, if prices break below this level, then 17,800 – 17,750 will be the fast-forward target for the index. The upper band is capped below 18,200 levels where 21 EMA is placed.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The weekly chart shows that the index is getting support near the 20 WMA. Also, the index has support from multiple technical parameters, which are near 17800. Thus, the overall structure shows continued consolidation near 17800-18300.

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

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