Pre-Open Daily Tech view of Nifty spot for 07.09.2021

​BY A STAFF REPORTER: 

Pre-Open Daily Tech view of Nifty spot for 07.09.2021

Nifty :- Yesterday the current week started with an opening Gap at 17399 then initial low 17349 & that was day’s low and then through out the session maintaining it’s bullish gap staying in a very narrow range in between 17350 to 17400 & finally settled at 17377. D to D basis up 54 points.

Nifty formed a small negative candle with minor upper and lower shadow. Technically this formation indicates a Spinning Top type pattern at the highs on the daily charts. That may be a reversal signal but confirmation is required. Today’s chart pattern will be crucial to define reversal or negating it more extension.

*Nifty is ready for Big Move either side in very next trading sessions specially beyond yesterday’s range

17430 & 17345. < whipsaw area >*

Though the main trend is bullish but as last week rally was very stiff & fast so some amount of profit-booking and consolidation can’t be ruled out before the next bigger move & that will be more healthy for the market after adjusting current overbought indicators. Current RSI 83.38.

Intraday pivot level 17384. Immediate basis expected range on the upside 17500/550 & on the down side 17300/250.

After last week’s 1 pause this is the 3rd consecutive session of extended gaining. This recent rally was actually started above 16700 & break out mainly above 16900 supported by 2 life lines – currently 3 Ema 17300 & 5 Ema 17200 .

Index heavyweight Reliance & side by side IT, select metal, auto stocks were the main pullers of the benchmark. The broader markets also continued positive momentum.

On the upside :-

Bulls need to move above 17400 & mainly above 17430 for a move towards 17468—17500+.

Swing basis major one 17555—17581.

On the down side :-

Bears will get active below 17345 for a move towards 17310 & then only 17260—17232.

Swing based major one 17200—17161.

The Option Table data indicates decent support at 17300 and reasonable resistance at 17500 immediate basis.

Last day India VIX was in green, up by 3.87% from 14.54 to 15.10 levels. Resistance of Vix 16-16.50.

Source : Eureka