Pre-Open Daily Tech View of Nifty Spot for 01.01.2021

Last week Bears had a strong control over the market. We have seen the biggest weekly fall (down 2.5 % or almost 1000 points) in last eight months.

Last Friday Nifty Bulls were unable to cross 17922 as high made was 17916 and bears were able to do all targets on downside, low was 17613. So, 300 points momentum in a day.

Correction basically due to domestic reasons but, apart from the earnings, traders eyes mainly on the upcoming US Fed meet and auto sales numbers.

Coming Week we have basically 3 trading days & which is a special auspicious week so, Bulls will expect that Nifty may bounce in such truncated festive week after almost 1000 points fall.

On the Upside :-

As after deep correction Nifty almost reached to it’s next good support zone 50 DMA i.e. 17550 area, so as long as if able to hold that level <+/-50> then one can again expect decent pullback towards 17800-17900 zone possible, which may act as the immediate hurdles also on the higher side. Fresh Bullish move only possible above 18000 mark.

For Intraday or Swing basis :- Bulls will have chance above 17715 for a move towards 17777-17850 & 17915.

On the Down side :-

As recent fall was with rising volume indication of more price decreasing then may break 50dma too, but as long as hold bulls are defend themselves but for fresh bullish move should cross & stay above 20dma 18020+ otherwise higher level will be selling opportunity.

For Intraday or Swing basis :- Now Bears need to break 17666/649 for a fall towards 17600-17576—17555 & only below that 17516 to 17450.

Nifty current RSI 42.90 falling – strength above 60.

The Option Table data indicates decent support at 17600 and reasonable resistance at 17900.

India VIX daily basis down -2.72% & closed at 17.42.

Source : Eureka

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