Pre-Open Tech View of Nifty Spot & Bank Nifty for 10.12.2021 & onwards

By a Staff Reporter:  Yesterday Nifty gave an another extended gains for 3rd consecutive day amid volatility. After crossing 20DMA initial jerk fizzled out before primary hurdle 17555 & then slipped upto 17380. But after taking support near 17350/60 region Nifty recouped gain further & coming back above 17500 mark supported by major weightage pillars ITC, Reliance, LT, ICICI Bk & Infy.

Though Nifty ultimately rose 47 points & settled at 17517, above 20dma 17476 but Technically formed a bearish candle Hanging Man Type formation with a lower shadow on the daily charts which is quite indecisive and indicating buying at lower levels. Any fresh stable bouncing and staying above 17555/60 will negate this bearish formation.

Though daily chart pattern formed bearish candle so initially opening may be mute or mild subdued and range bound but as per hourly chart the index continues to move in a Higher Top and Higher Bottom formation, indicating a positive bias. And side by side it also trading above 100 DSMA - Gap support 17250/300 & 20DSMA 17476 which also positive for short term basis.

So, traders should be cautiously optimistic – cautious at higher levels before 17666 or 17777 & focus on dips. Current range 17555-17333.

Source : Eureka

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