The Nifty snapped its three-day losing streak but just about amid volatility and range-bound trade, closing 5.7 points, or 0.03 percent, higher at 17,624.50 on April 20, also the weekly expiry day.
After opening higher at 17,634, the index touched the day’s high of 17,684 and low of 17,584. It formed a small-bodied bearish candlestick, which resembled the Doji pattern, on the daily charts, indicating indecisiveness among the bulls and the bears about the trend.
The Nifty tested 200-day moving average (DMA - 17,595) again but managed to close above it. It also stayed above the long downward-sloping resistance trendline. Hence as long as it trades above 17,500-17,600, the trend will not move in the direction of the bears; 17,700 is expected to be crucial for an upmove, experts said.
"Technically, the market is witnessing a non-directional activity near the 200-day SMA (simple moving average) and is also holding a lower top formation on intraday charts," Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said.
A fresh uptrend is possible only after the dismissal of 17,700, above which the index can move to 17,800-17,825. Below 17,700, weakness is likely to continue to 17,550-17,500, he added.
On the monthly options front, the maximum Call open interest is at 18,500 strike, followed by 17,700 strike, which can be the near-term resistance for the Nifty50, with Call writing at similar strikes in similar trend.
On the put side, the maximum open interest was at 17,700 strike followed by 17,000 strike and 17,600 strike, with writing at 17,700 strike, then 17,600 strike.
Hence 17,700 remains crucial for the upside, from where the Nifty can rise further to the recent high of 17,860. The index is expected to trade in the 17,500-17,850 range.
Banking index
The Bank Nifty again consolidated in a narrow 200-point range but outperformed the broader market. It closed 115.5 points higher at 42,270 and formed a small-bodied bullish candle on the daily scale.
"Supports are gradually shifting higher and now it has to hold above 42,000 mark, to make an up move towards 42,500 then 42,750 levels, "Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services, said. On the downside, supports are at 41,750 then 41,600.
India VIX broadly traded within the 11.5-12.5 range. It was down by 1.74 percent from 12.15 to 11.94 levels.
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