Sharekhan’s Gaurav Ratnaparkhi said moving averages have acted as a major hurdle so far this month.
“In the previous two cases, after a short-term bounce, the index had stumbled near these averages and the same is happening this time too. The index is consolidating and this consolidation may continue, before Nifty50 preparing for a breakout on the upperside, 17,500 is a key hurdle to watch,” Ratnaparkhi said.
For the day, the index closed at 17,304.60, down 17.60 points or 0.1%.
“Looking at the technical setup, the market is likely to trade in a consolidated fashion, until a breakout on either side is decisively seen. We reiterate that indices may not be doing much, individual stocks are not at all short of action, so one should continue to identify these potential movers and trade accordingly,” said Osho Krishan, Principal Analyst – Technical and Derivative Research at Angel One.
Ruchit Jain, Lead Research at 5paisa.com, said India VIX, which measures expected volatility, rose 8% to end just below the 23 level.
“VIX recently saw resistance around 24 and is now trading near the upper end. On the index front, 17,100-17,000 will be seen as the immediate support range while the 17,500 range is resistance. We may continue to see higher volatility in this wide range as a breakout on either side. Today’s move in the Banking Index was disappointing. We advise short-term traders to avoid aggressive positions and trade with proper risk management,” Jain said.