Pre-Open Tech view of Nifty Spot for 06.01.2022

By a Staff Reporter:  Within 4 days vertical move, break out basis almost 700 points surged. That was started from crucial down trend channel break out point 17260/70 region then step by step crossed all probable hurdles 17400-17500 & 17650 very easily.

After breaking very crucial one 17650 another 2 targets 17777 & yesterday major one 17930 crossed.

Yesterday after printing another 120 points positive candle closed at 17925, just infront of the barrier 17930/40 mark.

Such kind of vertical journey may not sustain, longs should lighten off and as to day is a crucial 5th day so up side may be temporarily capped if fails to cross 17930. Some sort of profit taking or drag down possible amid reddish global cues. Last night big plunged after U.S. Federal Reserve meeting minutes signaled the central bank may raise interest rates sooner than expected.

The India VIX 17.23 rose 7~ % <+1.11> on Wednesday and PCR is at 1.68, looking at these parameters we can conclude that market is overbought and profit booking can be seen, so one should be cautious at higher levels.

On the Down side :-The key support levels for the Nifty are placed at below pivot 17872 --17801, followed by 17677. Major 17605.

On the Upside :- If the index moves up, then the key resistance levels are above 17930 -- 17997 and 18068.

For Bank Nifty Spot Levels are :- Last cl 37695:-

Down side Supports are :- 37565—37438—37309-100 &

Upside Resistances are :- 37862—37999—38120-300.

Source : Eureka

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