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BY A STAFF REPORTER
Daily tech View of Nifty Spot for 24.08.2021
Yesterday initially after positive gap up jerk move as per expectation Nifty Opened & fixed day’s High at 16592 but not only failed to cross the 16600 land mark but also failed to stay above 16575 - 16545 <5 dma > -16500 in 1st 1 hour and in next hour vertical fall continued, broke 16444, filled up all initial Gap & corrected upto 16395.
From 16400 bulls fenced themselves & bounced back & “V” shaped recovery upto 16537, almost 78.60% morning fall covered. But reverse rally stopped there & corrected upto 16485.
Finally Nifty settled at 16496, up 46 points or 0.28%.
After Initial Volatility &then after recovery Nifty further lying in a range bound move.
This consolidation phase may continue as long as Nifty holds 16600 to 16400 range.
16500 Pivot & closing. Directional Change possible only beyond that range
To maintain this reverse move bull should hold 16500-16470.
On the technical front, 16470—16550 is immediate basis trading zone.
On the Upside :-
• Fresh bullish move if only stays above 16550 then upper hurdles are 16577 & 16592.
• This is the initial barrier, if crosses then major hurdles are 16610-16633.
• Cautious hurdles are at 16648/16666.
• Very major 16691.
On the Down side :-
• If the index moves down, initially weak below 16470 then 1st support zone 16444- 16419.
• If breaches then only major support at 16395-16375. Should hold by Bulls.
• In case breaches decisively then Break down supports are at 16333-16298.
• Very major 16258.
Buy on dips & Sell on rally if fails to cross or stay at/above the resistance areas.
Momentum indicator RSI turned positive currently 67, slipped from 77. Further strength will resume if crosses above 70.
Though Selling pressure continued in small and mid-cap stocks but main line indices traded positive due to strong support by IT stocks and positive global peers, Oil jumped even as Delta fears persist.
The ongoing correction will provide an opportunity for long-term investors to re-enter quality stocks.
Traders should remain cautious due to volatility.
Options data suggests a broader trading range in between 16700 and 16300 zones while an
immediate trading range is in between 16600 and 16400 zones.
India VIX down by 2.35% from 14.00 to 13.69 levels.