Tech View: Nifty could retest 18400-18450 levels. What should traders do on Friday?

Indicating support-based buying, headline equity index Nifty today formed a bullish candle with a longer lower shadow. Now it has to hold above 18281 zones, for an up move towards 18400 and 18442 zones while on the downside support exists at 18218 and 18181 zones, said Chandan Taparia of Motilal Oswal.

India VIX was down 4.50% from 13.11 to 12.52 levels. Cooling off volatility gave strength to bulls in the latter part of the session. Option data suggests a broader trading range between 18000 and 18600 zones while an immediate trading range between 18100 and 18500 zones.

The daily momentum indicator has a negative crossover, which indicates that the index can consolidate but the structure is turning in favor of bulls, chart readers said. The daily Bollinger bands are contracting, which indicates contraction of range.

What should traders do? Here’s what analysts said:
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Nifty is in a consolidation mode and the range of consolidation is likely to be 18000 – 18400. In terms of levels, 18420 – 18450 shall act as the immediate hurdle while 18200 – 18180 is the crucial support zone to watch out for on the downside.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
We are of the view that 20-day SMA or 18,220 would be the sacrosanct support zone for bulls. Above the same, the index could retest the level of 18,400-18,450. On the flip side, below 20-day SMA or 18,220 uptrend would be vulnerable. Below the same, the market could slip till 18,150-18,100.

Rupak De, Senior Technical Analyst at LKP Securities
The RSI is in bullish crossover on the lower timeframe, which suggests that the momentum is in favor of bulls. On the higher end, resistance is seen at 18,500. Support is seen at 18,200. Overall, the outlook for the market is positive, but there is still some volatility to be expected. Traders should take profits on rallies and look for opportunities to buy on dips.

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