Sensex today: Stock Market Highlights: Nifty charts blink red again. What traders should do on Wednesday – The Economic Times

Tech View: Nifty today broke its downward trending channel on the daily chart and formed another bear candle with minor upper and lower shadow. Now, till it remains below 17,250 zones, weakness could continue towards next support of 17,000 then 16,800 levels while on the upside hurdles are seen at 17,250 and 17,350 levels, said Chandan Taparia of Motilal Oswal.

Option data suggests a broader trading range in between 16,600 and 17,500 zones while an immediate trading range in between 16,800 and 17,300 zones.

The momentum indicator has a negative crossover, which is a sell signal and with prices trading along the expanding lower Bollinger band suggests that the fall is likely to continue, chart readers said.

What should traders do? Here’s what analysts said:

Rahul Ghose, Founder & CEO, Hedged

The only silver lining that remains now is that the weekly trend channel has not yet been broken and the last support for Nifty lies currently at 16,740 levels. This level also coincides with the bottom of the weekly demand zone. At this level of 16,740, all Put writers that are currently at 17000 level will also have to book their positions at loss, further adding to the downside momentum.