The Nifty closed higher for the first time in the last four consecutive sessions on September 19, as traders await the decision of the Federal Open Market Committee meeting to be announced later in the week.
The index opened flat at 17,541 and slipped to 17,430 but made a smart recovery in to hit the day's high of 17,667. The index ended 91.5 points higher at 17,622.
The index formed a bullish candle on the daily charts, which was largely on expected lines, given the selling pressure we have seen in the previous three straight sessions.
The index smartly defended not only 17,500 but also 17,400, which can be crucial support in the near term, while 17,700 in the immediate resistance followed by 17,800, experts said.
"The Nifty has remained range-bound as investors await the FOMC outcome, due this week. On the lower end, Nifty found support above 17,400, whereas bears protected the 17,700 mark. The trend is likely to remain sideward over the near term," Rupak De, Senior Technical Analyst at LKP Securities said.
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The support is placed at 17,350-17,400, a fall below 17,350 may trigger a correction towards 17,000. On the higher end, 17,700 may act as crucial resistance. A decisive move above 17,700 may induce a rally towards 17,900-18,100, the market expert said.
The broader market underperformed the benchmark. The Nifty Midcap 100 index was flat with a positive bias, whereas the smallcap 100 index fell nearly a percent. About 1,168 shares declined against 857 advancing shares on the NSE.
The volatility index India VIX jumped up to 21.21 levels but later on cooled down to settle below 20, making the bulls comfortable. It was up by 0.59 percent to 19.94 levels.
On Options front, we have seen maximum Call open interest at 18,000 strike followed by 18,500 strike while the maximum Put open interest was seen at 17,500 strike then 17,000 strike.
Call writing was seen 17,700 strike then 17,800 strike while Put writing was seen at 17,500 followed by 17,400 strike.
The above data indicates that the Nifty could see an immediate trading range of 17,300-17,800 in coming sessions.
The Bank Nifty opened gap down at 40,686 but managed to hold the previous day's low of 40,500. After some choppy trade it closed 128 points higher at 40,904.
The banking index formed a small-bodied bullish candle on the daily scale. Now it has to hold above 41,000 to make an up move towards 41,250 and 41,500, whereas supports are placed at 40,500 and 40,250, Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services 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.