The Nifty ended lower for the second day on September 7 though it managed to narrow losses in the afternoon trade on yet another day of volatile trade.
The index opened lower at 17,519 and slipped to the day's low of 17,484 but made a recovery in the afternoon to rise 17,650. The index finally settled 31 points lower at 17,624.
Given the recovery from the opening tick, the index formed a bullish candle on daily charts but remained within the 17,400-17,800 range. The index is likely to continue to move in range and has to go past 17,800 to make gains, experts said.
"Despite the market witnessing buying on the dips, the near-term trend seems to be sideways as the index is consolidating in a range of 17,777 and 17,401 zone. Hence, a decisive move in either of the directions shall not be expected unless Nifty emerges out of the said range," Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia said.
Traders should wait and initiate trading positions in the direction of the breakout, he said.
Auto and bank stocks pulled the market down but buying in FMCG, IT, and pharma stocks capped the losses.
The broader market continued to do better than the benchmark. The Nifty Midcap 100 index gained half a percent and the smallcap 100 index rose 0.8 percent on positive breadth.
On the NSE, more than five shares advanced against four declining shares.
India VIX, which signals volatility expected over the next 30 days, was down 0.8 percent to 19.37 levels, which experts read as unfavourable for the market.
Options data indicated a broader range of 17,200-18,000 for the Nifty in the coming sessions.
On the options front, the maximum Call open interest was at 18,000 strike, which will remain a crucial hurdle in the coming days, followed by 18,500 strike, with Call writing at 17,500 and 17,600 strikes.
The maximum Put open interest was at 16,000 strike, which could act as a crucial support for the Nifty, followed by 16,500 and 17,500 strikes, with Put writing at 17,500 strike then 17,600 and 17,200 strikes.
The Bank Nifty opened lower at 39,338 and remained in the 39,300-39,550 range with a negative bias. The banking index fell 211 points to 39,456 and formed small bodied bullish candle, as the closing was higher than opening levels.
The index is stuck in a broad range of 1,500 points, where stiff resistance is visible at 40,000 and support is at 38,500.
The index will witness a trending move on a break on either side, Kunal Shah, Senior Technical Analyst at LKP Securities said.
Immediate support stands at 39,200 and if it is breached, the index can slip to 38,800-38,500 zone. The bias remains on the buy side as long as the support level is held, he said.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.