Weekly Analysis Nifty Spot_29.11.2021

By a staff reporter:  Last Friday was the worst day of the year. 200 points Gap down opening from 17536 to 17338 due to sudden fears of new Variant Omicron. D to D basis - 510 points, or 3%~ down, finally settled at 17026.

W to W basis -738 pts & 2nd consecutive corrective week fall from week High 17805. Previous week’s top was 18210. Correction actually started from 19.1.2021 from 18604. Almost 8% erased from top.

For coming week traders should be very cautious, apart from daily basis global Covid- new Variant Omicron related updates, Global cues and FII figs, they will also be eyeing domestic data like GDP nos, Auto sales Figs and then forthcoming Monetary Policy etc.

Technically:-Nifty entered into –ve zone after breaking 17800 mark - Head & Shoulder Neck line break down point on 22/11/21 & that became more painful as at the end of this week suddenly after failure of Thursday’s false recovery and bouncing attempt upto 17550 from double bottom support 17350.

D & W basis strong bearish Marubozu candlestick formation & CL below not only it’s critical 20-DWSMA 17200 but also below 100-DSMA 17100 & 50% retracement support 17060 not a good sign for bulls that has opened the door for further weakness.

Coming Monday’s initial move basically for 1st 15 mins High & low crucial & that may give some guideline for next week’s movement. 17150 & 16900 is the coming week immediate initial narrow range.

On the downside :- Fresh short should be taken below 16900 for a move towards 16800.

On for extended basis very crucial Supports are 16700~ <61.8% retracement level > & 16600~<150 DEMA>. Any initial jerk if tests the above mentioned lower levels then may take some rest and some bouncing possible from any one of the above mentioned supports.

In case situation becomes more negative then for extreme Bear action below 16500—16350 & 16100 < 200DMA> cannot be ruled out.

On the Upside :- Any bouncing from lower levels may fizzle out at or before initial pull back hurdle 17100/150. But if able to breaches 17160 + then a move possible towards 17230—17280 but Swing basis no bullish hope as long as stays below 17350-450 < major 5/3 dma >.

Against last 2 weeks fall 2 crucial Resistances :- 50% & 62% retracement hurdles are 17600—17750.

Weekly RSI 52 & Daily 31. India VIX weekly basis at last big surged. From 13.60 to 21.40. Cl @20.80

R:- 22-25. Yearly top 29.65 S:- 18-14.

Summary, Nifty has support at 16700 and resistance at 17300.

Source : Eureka

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