Technical View | Nifty needs a decisive close above 17,950 to gain momentum

The Nifty, after the previous day's decisive upmove, remained directionless on February 9, the weekly F&O expiry day, in the absence of fresh positive triggers and closed 22 points higher at 17, 893.

Global slowdown worries and likely continuity in policy tightening by central banks to tame inflation limited the upside for the equity market.

The index remained in the range of 75 points and formed a Doji pattern on the daily charts, indicating indecisiveness among buyers and sellers about the future market trend.

As the index made higher highs, higher lows for the second straight day, there is a possibility that it may reclaim 18,000-18,100 in the coming session if it holds the support at 17,700-17,800, experts said.

"For traders, 17,800 could act as a sacrosanct support level, while 17,950 could be the important hurdle," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said.

Once the index goes past 17,950, the chances of hitting 18,000-18,100 will be brighter, he said.

A fresh round of selling is possible if the index slips below 17,800, from where it can slide to 17,650-17,600, the market expert said.

On the monthly options front, the maximum Call open interest was at 18,000 strike followed by 18,500 and 18,200 strikes, with Call writing at 17,700 strike, then 18,100 strike and 18,200 strike.

On the Put side, the maximum open interest was at 17,500 strike followed by 17,600 strike, with writing at 17,700 strike then 17,600 strike.

The data indicates that 18,000 will act as crucial resistance area for the Nifty in coming sessions, with support at 17,700-17,600. Overall expected trading range is 17,500-18,000.

India VIX, the fear index, declined further to 13.04 level, down 4.08 percent.

Banking index

The Bank Nifty opened higher at 41,634, which was also an intraday high, but failed to hold on to it and slipped to 41,253 in the initial hour of trade. The index closed 17 points higher at 41,554.

It formed a bearish candle on the daily charts, with a long lower shadow, indicating support-based buying as it negated the higher high, higher low formation.

"The Bank Nifty remained mostly sideways as the index failed to witness a directional move during the day. Bulls were able to hold 41,500 on a closing basis. On the lower end, support is placed at 41,500-41,300-41,000. The resistance on the higher end is pegged at 41,800-42,000," Kunal Shah, Senior Technical Analyst at LKP Securities said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.