Technical View | Nifty corrects on profit taking, 18,300 is the level to watch


The Nifty closed 66 points lower at 18,344 on November 17 as selling in late trade weighed on the sentiment amid lacklustre global cues. All sectoral indices, barring PSU, closed in the red, with auto and IT names losing the most.

The index, however, defended 18,300 and formed Doji candle on the daily charts as the closing was near its opening levels of 18,359, indicating indecisiveness among bulls and bears about the market trend.

The level of 18,300 is expected to play a crucial role for either side of the trade in the coming sessions, with resistance at 18,400-18,450 and support at 18,200 followed by 18,000 levels, experts said.

” The RSI (relative strength index 14) on the daily chart has entered a bearish correction,” Rupak De, Senior Technical Analyst at LKP Securities said.

A fall below 18,300 may trigger a correction towards 18,100-18,000. On the other hand, resistance is visible at 18,450, the market expert said.

Also read: Taking Stock | Market loses steam on lack of fresh triggers, Nifty settles at 18,344

On the options front, the immediate trading range for the index is expected to be 18,200-18,500.

The maximum Call open interest was senb at 19,000 strike followed by 18,500 strike with Call writing at 18,400 strike then 18,500 strike.

The maximum Put open interest was seen at 18,000 strike followed by 17,500 strike, with Put writing at 18,300 strike then 18,100 strike.

The volatility remained around 15 mark, offering comfort to bulls. India VIX, an indicator of volatility expected over the next 30 days, fell up to 13.09 intraday, the lowest level since November 18, 2021, before closing 1.47 percent lower at 14.88.

Banking index

The Bank Nifty opened negative at 42,400 and moved in a narrow range of 250 points. It inched up during the day and made a new high of 42,622 but gave up gains in the last hour to close 77 points down at 42,458.

Also read: Gainers & Losers: 10 stocks that moved the most on November 17

The banking index formed a small-bodied bullish candle, which resembled a Shooting Star pattern on the daily frame. It made higher lows for the fifth session.

“Now it has to hold 42,350 level to make a march towards 42,750 and 43,000 levels, with supports at 42,250 and 42,000 levels,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.

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