Pre-Open Daily Tech View of Nifty Spot for 20.09.2021

By a staff reporter: ‌Last Friday Nifty opened in green with huge Gap up at 17710 and initial low 17691, then traded higher in the first half of the session and hit fresh all-time high at 17793. ​

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‌But just at 11.00 a.m. failing to cross 17800 mark profit booking started & Nifty dipped around 255 points from top. Intraday low set at 17537 & finally settled at 17585.



‌Day to day basis snapped a three-day winning streak and fell 44 points and formed a dark cloud cover sort of candle on the daily chart which is resembled a bearish reversal pattern by nature but confirmation is required. 

‌Though main trend is broadly positive but as very short term basis market is over heated and due to temporary over bought situation bulls should maintain cautious stance as long as stays below *17777-17800.*



‌‌One time daily RSI was 85.59 & Friday’s correction occurred with high volume. These were the causes of concern for Bulls.  So wait for dips & that would be the good buying opportunities.



‌*On the upside* if the benchmark trades above *17600 to 17638* then intraday basis immediate Resistance levels are *17664—17694 & 17737.*



‌‌*On the down side* if the benchmark falling texture will break below *17530* then immediate basis 1st support will act at *17505/17485 < 5dma/ema >* level & only below that may drag down more towards



‌*17444/425 < 9dma/ema >*  & very major *17385.*



‌‌*Very Short term basis as long as hold 17385-350 chances of further bouncing from lower ends.*



‌‌*Options Chain* depicts that the Nifty’s immediate trading range could be 17400-17800.



‌‌*India Vix* last Friday Closed at 15.23 up by 5.69%.  Day Low was 12.14. More strength if stays above 15.65—16.55.



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