Rohan Patil, Research Analyst at Bonanza Portfolio
The benchmark Nifty50 index witnessed a gap-up opening and traded above 17,080 for a major part of the day on December 1. It finally managed to close above 17,150. It has neither broken the previous day's high nor low. The India VIX managed to cool off by 8.13 percent to settle at 19.45.
The index managed to close above its 100-day exponential moving average. This is currently acting as an anchor point for the index. The Nifty closing above the lower side of the Bollinger band (20,2) is the first indication of reversal on the cards. At the same time, it has managed to stay above the 20-day EMA (exponential moving average) on an hourly basis.
The immediate support for the Nifty50 is placed near 16,800 and, if prices break below these levels, then 16,500 will be the next level to watch out for. The immediate resistance is capped at 17,355 levels. If the prices close above 17,355 convincingly, then the gate is open at 17,600 levels. The Nifty has just created an early indication of reversal. Any close above 17,355 will confirm that the reversal is in place.