Technical View: The Nifty 50 showed smart recovery of over 200 points from the lowest level of the day. It closed with a slight lead on 17 February. For the first time in the last nine sessions, it appeared in the green mark. However, it could not go above 23,000 amid growing volatility. Given the pressure of fast selling in the past, this reversal was expected, but overall the century remains of recession. The reason for this is that the index is trading below all the major moving averages (10, 20, 50, 100 and 200-day EMA). Its lower high-lower low formation continues. Therefore, experts say that as long as the index remains below 23,000, consolidation may continue with support at 22,700. Below him, 22,500-22,400 zones should be monitored. At a higher level, the index may face resistance in the 23,100-23,300 range.
The Nifty opened with a decline at 22,810 and reached a low of 22,725 in intraday. But between volatility, correction started showing in the index from morning itself. At the end of the market, 30 points were closed at 22,960. It created a bullish candlestick pattern with minor lower shadows on the daily time frame.
How will NIFTY move on Tuesday 18 February
Jatin Gedia of Mirae Asset Sharekhan said that the Everali Momentum Indicator has started a positive crossover. PCR (put call ratio – Open interest) suggested improvement put writing from 0.64 to 0.81. This helps in creating a strong support base in a zone of 22,800-22,700 from the perspective of weekly expiry.
Keeping these data points in mind, they expect a relief rally towards 23,250 (20-Day Moving Average) from a short-term vision. He said, “We are converting our short-term trend into positive with a short-term target of 23,700. This level matches with an average of 20-veirs.”
Weekly can trade in a range of 22,500-24,000 in short term according to derivative data. It has immediate support at 22,800 and resistance in 23,300 zones.
How will Bank Nifty move on Tuesday 18 February
Bank Nifty also closed at 49,259 above 159 points. It created a bullish candlestick pattern with long lower shadows on the daily chart. It is indicating shopping at the lower level. However, the index is still trading below all the major moving averages, a negative signal.
Anshul Jain of Lakshmishree Investments said, “It indicates both fast rebound short covering and new by-interest. Upwards, 49,200-49,300 zones will serve as immediate resistance. 49,800 to 49,800 to 49,200-49,300 zones. The major daily swing can extend to high. “
Traders should monitor the constant strength over the resistance to confirm further speed. He advised that until then, shopping on the fall will remain a favorable strategy.
Meanwhile, India Vix, the index of fear continued its upward journey. It rose 4.71 percent to 15.72. All of these climbed above the major moving averages. This has caused bulls more alert.
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