Yesterday was the 2nd consecutive day of huge fall. Nifty Spot corrected intraday basis 284 points or 1.65% to close at 16912, formed an another large bearish engulfing candle on the daily charts. Technically it was big-bodied Bearish Marubozu candle which indicates further bear action after previous week 700 points rally that started just below 17500 mark.
Yesterday fresh selling started after failing to stay above crucial hurdle 17220/200 i.e. 100DSMA & that became more corrective after decisively breaking 17070 & 16950. After 2 Day’s falling Nifty took support from strong technical level 16890~ - day’s low & closed at 16912.
On the Upside :-
Any upside bounce from here subject to hold 16890 could find resistance above 16950 at 17050 & 17090. Major 17125/155. No bullish hope as long as stays below 17220.
On the downside :-
Nifty’s short term trend is negative & lower tops - lower bottoms is intact on the daily/weekly chart.
Last week - Friday’s- high 17489 as considered as swing basis last lower top so we may expect lower bottom possible after breaking current lower bottom 16782 though below 16890 – 16770 another crucial technical support. In case double bottom breaks then more bear strength.
Swing basis: Range 16770 to 17470 & extended basis 16650/450 to 17600/700.
Investors would be eyeing the RBI MPC meeting <8th Dec> and the Index of Industrial Productions (IIP) data which will be released on Dec 10.
India VIX further bouncing taking support from 18.30. High 20.45 & closed at 20.08. D to D basis up 1.62 points.
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