Pre-Open Daily Tech View of Nifty spot for 07.10.2021

By a Staff Reporter:  Yesterday at initial stage Bulls attempt failed to cross our swing based 1st positional hurdle 17888.

After higher opening at 17861 Nifty slipped upto 17777 & bounced further upto 17878. After making 100 points “U” shaped journey & 2nd time whipsawed before 17900 from 12.30 pm correction started.

Correction was vertical –throughout the rest session, not only broke 17700 but also cracked below 17666 <5 dma> & low printed at 17613 & closed at 17646.

Nifty declined 176 points or almost a percent after strong bear action and formed a bearish engulfing Red candle on the daily charts. Selling amid weak global cues was seen across sectors with Metals, Auto, IT and Pharma.

But one positive thing is though Nifty caught in bear trap & slipped such 1% but Spot Nifty bulls some how defend themselves before our tentative support 17600 i.e. very crucial 20dma.

Today weekly expiry session – volatility may persists – due to global bouncing here also expectation of Gap up bouncing opening even above 9 dma 17719 but initially may range bound in between 17777/822 on the upside & after positive opening if retraces further then *on the down side may settle before either 17700 or 17650 area.

So expected expiry range 17800/850 & 17650/600. Middle pivot area 17750/710.

On the Upside :-

Positive above 17680 & more above 17719 then Resistance 17747 & 17777.

Cautious hurdle 17800 & Extended 17822—17851.

On the down side :-

Negative below 17610 & more below 17580 then Support 17555 & 17525.

Bulls strong base support 17485 & then only in more bear grip extended support 17444-17414.

The Option Table data indicates decent support at 17500 and reasonable resistance at 17800.

Trending move is expected.

India VIX after 4 days consecutive fall yesterday bounced from low 16.11 to 17.59 & closed at 17.33 day to day basis up by 5.70%. R :- 19-21 S:- 16-14.

Source : Eureka