Pre-Open Trading ideas of Nifty Spot for 22-12-2021 and onwards

By a staff reporter: 

Nifty spot prices paused its last two days straight decline and settled up at 16770.85 level. Prices formed a Bullish Harami pattern on its daily chart which indicates reversal in prices. Nifty’s broader range stands in between 17300 to 16250 level.

For Wednesday, the bias is likely to be neutral as prices formed a “Doji” pattern which suggest indecisiveness in prices. On upside, immediate resistance emerges around 16805 level and a break of that may take prices higher to 16922 level which is 5 DEMA and act as immediate strong resistance level. A sustainable break above that may take prices further higher to 17025 level.

On the down side, 16640 level is acting as immediate support and a break of that may take prices further lower to 16670 level which may act as strong support for the day. A break of that may take prices further lower to 16615 and 16555 levels respectively.

The option data shows 17200CE has highest OI, followed by 17000CE while 16000PE has highest OI writers, followed by 16500PE. The wider range for Nifty is 16000 to 17200 while shorter range for nifty stands in between 16500 to 17000 level.

India VIX moved down by 7.5% from 18.965 to 17.5375 levels.

Bank Nifty formed a “Bullish Homing Pigeon Candle” and the pattern will confirm, followed by a close above previous day’s high. If prices failed to move up from current level then it may move lower to 34350 level and a break of that may take prices further lower to 33950 level. On the other hand, 34700 is acting as immediate resistance and a break of that may take prices higher to 35050 level and 35380 level if extended.

Source : Eureka

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