On weekly charts, the 50-stock index has formed a Bullish Inside Candle pattern and the 50-day moving average of 19,450 points now acts as a formidable resistance for the index, according to Om Mehra, technical analyst, SAMCO Securities
“The anticipated weekly trading range is between 19,000 and 19,550, but a decisive break in either direction could alter the range-bound trend,” he said.
On Friday, the Nifty50 ended 0.5% higher at 19230.60 points. The gains in the market saw the volatility gauge India VIX cool off and close 1.7% lower at 10.8825 points.
The weekly options chart of the Nifty 50 suggests rangebound trade, as the 19300 call option and 19200 put option hold the highest open interest.
Jay Thakkar, head – alternate research, Sharekhan by BNP Paribas
The Nifty closed in the positive territory for the week, however, it was not able to surpass its immediate resistance of 19333.60 levels, as the high made this week was 19276.25.
This miss still keeps open the possibility of this being a Wave 4 bounce, however, above 19333.60, it will negate the same and thereafter, this bounce will be confirmed as Wave (X) bounce.
The Nifty 50 has retraced between 38.2% to 50% of its previous fall from 19849.75 to 18837.85, and it can further retrace until 19,400 levels till 18973.70 level is held.
Om Mehra, technical analyst, SAMCO Securities
From a technical standpoint, the weekly chart displays a Bullish Inside Candle formation, with the weekly RSI at 51. On the daily chart, the 50-day moving average acts as a formidable resistance at 19,450 for the Nifty 50.
Looking at the options market, there’s substantial interest at the 19,500 call strike price and 19,000 put strike.
The anticipated weekly trading range is between 19,000 and 19,550, but a decisive break in either direction could alter the rangebound trend.
Kunal Shah, senior technical and derivative analyst, LKP Securities
After a gap-up opening, Nifty 50 faced resistance around 19,250-19,300 levels, and we can see maximum put writing at 19,200 levels, which may act as strong support for Nifty. We can see maximum open interest in the 19,300 call option, so one should only be bullish on Nifty if it closes above its crucial 100-day moving average, which is placed at 19,300.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)