Tech View: Nifty charts hint at downside towards 16,800 levels. What should traders do next week

Nifty today fashioned a extensive bear candle on the everyday and weekly charts. Chart visitors explained the the latest swing high of 17,207 could now be considered a new reduce major of the sequence.

Now, till it holds below 17,000 zones weakness could be noticed towards 16,850 and 16,666 zones, when on the upside hurdles are positioned at 17,071 and 17,171 ranges, stated Chandan Taparia of Motilal Oswal.

Anxiety gauge index India VIX was up by 5.18{fa54600cdce496f94cc1399742656d2709d9747721dfc890536efdd06456dfb9} from 14.49 to 15.24 degrees. Volatility heated up just after declines from the past a few sessions and over-all gave discomfort to the bulls.

Selections facts suggests a broader investing range concerning 16,600 to 17,300 zones, when an instant investing array in in between 16,700 to 17,150 zones.

What really should traders do? Here’s what analysts stated:

Jatin Gedia, Specialized Research Analyst, Sharekhan by BNP Paribas
On the hourly charts, we can notice that Nifty is buying and selling in the zone of 16,910 – 16,970, where the vital Fibonacci retracement degrees of the former rise from 16,828 – 17,207 are put. This zone shall be the make-or-break aid zone, and if Nifty fails to maintain on to this guidance, the Nifty has probably began the subsequent leg of the fall.The day-to-day momentum indicator has a constructive crossover, which is a obtain sign and is also supporting our view that the pullback rally is not complete. Considering this, we carry on to manage our good outlook on the Nifty. On the upside, the first hurdle is positioned at 17,180 – 17,210. Over and above this it has the opportunity to 17,315 – 17,430.

Ajit Mishra, VP – Technological Analysis, Religare Broking
The the latest slide has faded hopes of sustained recovery, and we might once again stop up observing assortment-bound moves in the index. Useless to say, the important aid is intact at 16,800 in Nifty. We therefore reiterate our perspective to limit positions and keep positions on both equally sides.

Rupak De, Senior Technical Analyst at LKP Securities
Nifty slipped under the critical degree of 16,950 as bears received handle of the market. Furthermore, Nifty fell just after a few days of consolidation, indicating an raise in bearish bets. The momentum indicator RSI is in a bearish crossover. In the brief phrase, the index could fall, with a possible fall to 16,750. On the increased finish, resistance is noticeable at 17,200.

Nagaraj Shetti, Technological Investigate Analyst, HDFC Securities
]The short-phrase development of the Nifty proceeds to be weak. Rapid resistances are remaining unchallenged and robust supports have commenced to split on the downside a person soon after an additional. One particular might anticipate Nifty to slide down to 16,800-16,700 stages by future 7 days. On the upper facet, the region of 17,050 could be a very important overhead resistance.

(Disclaimer: Suggestions, solutions, views and viewpoints provided by the specialists are their possess. These do not represent the views of Economic Situations)