Nifty consolidating in the range of 17,775 - 18,265, says Ravi Nathani

According to the technical analyst, a big move on the Nifty is likely once the trading range is dismissed.

Nifty 50 Index

Last close: 17,858.20

The benchmark indices closed lower whereas Nifty 50 slipped 0.21 percent at the end of the day. Media and IT index lead the markets on the higher side on Thursday, whereas Oil & Gas, Banks, and FMCG remained weak throughout the day. 

Nifty is still arrested within the consolidation range of 17,775 – 18,265. Strong buying interest has been witnessed whenever Nifty has traded below 17,800. I think the market is preparing for a big move on the dismissal of the trading range.

Intraday No Trade Zone: 17,905 – 17,815

Expected Intraday Resistance: 17,949 / 18,040 / 18,150 / 18,225

Expected Intraday Support: 17,764 / 17,675 / 17,560 / 17,500

Nifty Media Index

Last close: 1,960.60

On Thursday, this index managed to close with a positive bias after six days of the sharp selloff, where it corrected more than 100 points and 5.75 percent.

With a strict stop loss of 1,928, the best trading strategy for traders would be the buy this Index or its constituents at lower levels for the near and short term with targets expected 2,020 and 2,075.

Intraday No Trade Zone: 1,952 – 1,975

Expected Intraday Resistance: 1,988 / 2,010 / 2,028

Expected Intraday Support: 1,941 / 1,925 / 1,900

Nifty IT Index

Last close: 28,720.20

Absolute consolidation on charts since last 15 days; 28,100 on the lower side and 29,030 on the higher side, close above or below would give clear direction for the near and short term.

I think post the outperformance of the Q3 results of the top 3 large-cap stocks this index is expected to surpass and close above the higher side of the range.

Post violation of the upper range Index will see next resistance at 29,950 and 30,500. Therefore, the best trading strategy for traders and investors would be to buy this Index or its constituents on dips.

Intraday No Trade Zone: 28,800 – 28,620

Expected Intraday Resistance: 288,50 / 29,010 / 29,280

Expected Intraday Support: 28,530 / 28,380

(Ravi Nathani is an independent technical analyst. Views expressed are personal).