By a staff reporter: Yesterday though Nifty started off flat at 17051 but initially surged almost 280 points, crossed all bullish targets specially after crossing 17171 and touched the day’s high of 17324. Amid huge volatility this sharp massive rally suddenly compete fizzled out failing to cross crucial 17330/350 mark and we saw a huge price correction from the top erased all gains, low made at 16931 & finally closed at 16983 down by 70 points, or 0.41%. Closing was below 100DMA 17120 that will be acted as immediate barrier today.
Main hurdle 17171.
The market turned choppy following Moderna CEO’s comments that vaccines may not be effective against the Omicron strain.
The Nifty formed a Bearish inverted hammer kind of candle with long upper shadow on the daily scale suggesting weakness at higher ends.
Bullish strength will resume if Nifty crosses primarily 17120 & mainly above 17171-200 zone and stays above that then only the upward momentum to be continued towards 17350 & then 17500 but if bouncing further fizzles out at higher ends & breaches further 16900 then weakness may be seen towards 16800-700 & even 16500.
Markets will first react to the GDP numbers in early trade and the auto sales figs will also come today. News flows regarding the new coronavirus variant would keep the volatility high. Traders should focus on dips & cautious at resistances.
More precisely for intra & swing basis :-
On the upside :- If Nifty holds 16900 <+/-50> & stays above 17041 & more above 17080 then resistances are 17120—17171 & then Swing based major hurdle 17235/17265 & 17333.
Fresh break out only above 17330/350. Major pull back hurdle 17470.
Down side :- Immediate support around 16930/900. Bears will active below that & then next supports are 16870-16835. Monday’s 1st 15 min low 16800~ < 16770 > should hold. Very major swing basis support at 16686.
Option data suggests a wider trading range in between 16500 to 17500 zones.
India VIX was up by 1.62% from 20.83 to 21.17 levels.
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