From last two trading sessions, the Nifty is trading within a very narrow range and has closed below its bearish Engulfing Candlestick pattern which was formed on December 13.

The prices have formed a 21 & 50-day exponential moving averages cluster at 17,600 levels which is acting as a strong resistance for the benchmark index. Bulls tried its level best to close above its resistance cluster formed at 17,600 levels but was unable to sustain above the same.

From last four weeks, prices are witnessing a marginal closing above its 21-week exponential moving average which is placed at 17,173 and acting as an anchor point for the index on the weekly time frame.

Momentum oscillator RSI (14) is showing a sign of weakness on daily as well as the weekly chart where else MACD indicator is also reading below its center line indicates bearish to sideways momentum in the market.

According to options data, resistance area is near 17,500-17,600 and supports are placed at 17,000-17,200. In Wednesday's trading session, new addition of call options contract was visible at 17300 CE strike and new addition of Put option contracts was seen at 17100 PE strike.

Major unwinding of Call options contract was seen at 18000 CE strike followed by 18200 and 18100 CE strikes respectively, whereas on unwinding of Put options contract was seen at 17300 PE and 17400 PE strikes indicating shifting of base on lower side of the option chain.

Currently, the Nifty is expected to trade in range between 17,600 – 16,900 for next few trading session until and unless prices are not giving any superior move on the either side of the range.