BY A STAFF REPORTER
* Day 2 of RBI MPC meeting for monetary policy for 2021-22.
Pre-Open Daily Tech View of Nifty Spot for 05.08.2021
Yesterday Nifty opened strong with another Gap up mode at 16195 with immediate low 16176 and then remained highly volatile with a positive bias throughout the session & hit an intraday high of 16290. The index finally settled at 16258 up by 128 points.
After breaking bullish edge 15915/962 of long consolidation phase 15900-15600, Nifty almost tested 16300. Our all Bullish target of 1st phase done yesterday. Nifty formed another small body bullish candle on the daily charts after previous day’s long bullish engulfing candle.
Though yesterday Nifty gave a sharp rally but that was supported by mainly top 7 highly weightage Pillars & strong buying in banking & financial sector. There was a wide profit-booking & selling pressure in broader markets. The advance-decline ratio was completely in favour of the bears.
Nifty Midcap 100 index fell 1.19% and Smallcap 100 index declined 1.01%. Traders turn cautious & this is a negative sign for trend going ahead.
Technically at top before crossing crucial 16300 mark at current uncharted territory traders should book profits partially and remain cautiously wait to watch the nature of the next move – which one is either fresh break out of minimum cooling. Indicator RSI Currently also almost at 70.
On the upside :- For further upswing in 2nd phase of rally towards 16400-16450 levels Bulls should not only break 16300 but also sustain above the day’s gap zone of 16176– 16146.
On the downside:- Any violation of the lower edge of the Gap & basically 16100 levels may cause profit booking towards 16000 -15950 levels.
For Intraday
On the upside incase sustain above 1st R :- 16294 then other hurdles are 16320—16337—16364. Extended 16386 & maximum 16429.
On the downside below 1st S :- 16222 then other supports are 16185—16147 16127. Extended 16088 & maximum 16052.
Options data indicated that a broader trading range for the Nifty has been shifted upwards to 16000 to 16600 for the coming sessions.
India VIX fell 3.91% from 13.74 to 13.21 levels.
Source : Eureka
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