The Nifty index formed a bearish candle with a long lower shadow resembling a hammer pattern on the daily charts, indicating support-based buying at lower levels. However, weakness could be seen towards 17,300 and 17,250 zones as long as the index remains below 17,442 zones. On the upside, hurdles exist at 17,525 and 17,635 levels.
The India VIX fear gauge index has been rising for the last four sessions, which could discomfort bulls in the market. According to option data, the broader trading range is expected to be between 17,000 and 17,800 zones, while the immediate trading range could be between 17,200 and 17,600 zones.
Analysts suggest that 17,550 would act as a medium-term resistance zone for positional traders, and the index could slip till 17,150 if it remains below that level. However, a minor pullback rally is possible if the index trades above 17,425 and could move up to 17,480-17,500. Nifty is currently in a demand area and has support up to the 17,250 level, according to another analyst. Markets will try to move in a positive direction above 17,500, but a close below 17,250 could make short sellers of PE run for cover.