Wednesday, October 6, 2021

NIFTY PREDICTION FOR TOMORROW 07 OCT 2021

Markets witnessed profit taking on the back of weak Asian market cues. After the 17775 support breakdown, selling intensified in Nifty. After a positive opening, the Nifty index wiped out its early gains and traded lower for the day, settling at 17646 levels with a loss of 176 points, while Bank Nifty ended at 37521 levels with a 0.5% fall. All the sectoral indices settled on a negative

note wherein Nifty Metal was the prime laggards for the day. 

Technically, on the daily chart, the index has formed a Bearish Engulfing candlestick pattern, which suggests some weakness for the coming day. Moreover, a momentum indicator Stochastic witnessed a negative crossover. In addition, on a four hourly chart the index has sustained below Middle Bollinger Band formation, which indicates further correction but the overall trend is still looking bullish, so every dip would be a buying opportunity for the fresh entry. At present, the index has immediate support at 17600 while resistance at the 17850 level.

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Resistance: 17750, 17800, 17850

Support: 17650, 17600, 17550

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