Stock Market Highlights: Nifty forms Doji candle, ends above 20-DMA. What traders should do on Tuesday

Headline equity index Nifty today formed a Doji candle on the daily charts and closed the day with a gain of around 90 points to close above the 20-DMA. Now, it has to hold above 18081 zones for an up move towards 18181 and 18250 zones whereas supports are placed at 18018 and 17950 zones, said Chandan Taparia of Motial Oswal.

Fear gauge index India VIX was down by 1.25% from 13.79 to 13.61 levels. Volatility cooled down from higher zones and now needs to sustain below 14 for stability to resume. Option data suggests a trading range in between 17,900 and 18,300 zones while an immediate trading range in between 18000 and 18250 zones.

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

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The overall structure shows the index is preparing to start the next leg on the upside. On the daily chart, it has started forming higher top higher bottom and once the swing high of 18184 is crossed then one can initiate a fresh long position. The daily upper Bollinger Band is set for an expansion, which will create room for the price action on the higher side. In the short term, the Nifty is expected to surpass the key hurdle zone of 18260-18300 & head towards 18500. On the other hand, the level of 18000 will provide cushion on the downside.