This is the second day in a row when Nifty50 closed in the red, but on Thursday the close was lower than the open, leading to the formation of a bearish candle.
Although the index failed to hold the 18,000 level, it still managed to close above the critical support above 17,800, a positive sign for the bulls.
The index closed 126 points lower at 17,877, while the S&P BSE Sensex fell 412 points to close at 59,934 on Thursday.
Top bulls from Nifty50 include names like
, , and .
“The Nifty50 index failed to hold above the previous day’s high and slowly dropped to the 17,860 area. It formed a Bearish candle on a daily scale and closed near its intraday low,” said Chandan.
Vice President and Analyst-Derivatives at Limited, said.
“It lost the previous session’s momentum and wiped out half of the previous session’s rally. Nifty must now hold above 17,850 areas, to rally to 18,088 and 18,200 areas while support is located at 17,777 and 17,667 areas,” he said.
India VIX rose 0.62% from 18.27 to 18.39. Volatility spiked to higher zones and now needs to drop for the market to fully stabilize.
On the options front, the maximum Call OI at 18,000, will act as a strong resistance, followed by 18,500 strikes, while the maximum deal openness at 17,000, will be an important support. , followed by 17500 attacks.
Taparia added: “Options data shows a change in trading range from 17,500 to 18,300 zones, while immediate trading range between 17,600 and 18,100 zones.
Nifty Bank closed 0.4% lower at 41,209. The banks index, which closed up more than 1% in the previous trading sessions, lost strength on Thursday.
Traders book profits on the higher side above 41,000. The index is up a little more than 4% in a week. Undertone remains bullish and next resistance is seen above the 41500 level.
Kunal Shah, Senior Technical Analyst at
“Low end support stands at 40,000, where one of the highest open benefits is built on the deal side. The bottom line remains bullish, and one should keep a bearish buy approach as long as it holds the 40,000 support on the downside,” he added.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)