Pre-Open Daily Tech View of Nifty Spot for 18.08.2021

Yesterday Nifty touched another lifetime high of 16628 and closed the day at 16614 near its highest levels, gaining 51 points though there was volatility throughout the session.​
Nifty formed another bullish candle on the daily scale and higher highs-higher lows formation for 4th session after consolidation phase break out above 16360 supported by 5 Days exponential moving average which is currently lying at 16500/490 mark which is a current support & indicates dips is a good buying opportunity and this uptrend continuation pattern to be continued as long as price sustains above 5 EMA & DMA levels 16490/470 mark & this upward journey may continue towards 16666 -16777 initially and that to be extended upto 16880 also, while on the downside, strong support are shifted to 16400 and 16300 levels.

But momentum indicators are entering into over bought stage so after any fresh bullish move short term basis some consolidation & range bound action may possible & then traders should maintain the cautious stance at higher levels. Current RSI is at 77.50 -- 80 is generally strong resistance area. So after reaching that level some cooling is highly expected.

We could see big move in market in coming sessions subject to hold Immediate support which is placed at 16530 & 16480/90 levels.


On the Upside:-

For intra day basis :-

Bulls need to move above 16628 for a move towards 16640/ 16666 and major 16688.

Swing Hurdles are - 16729—16777 & 16845.
 
On the Down side :-

For intra day basis :-

Bears need to move below 16577 for a initial down move towards 16560 & then quick fall
towards 16530—16498.

Major swing based supports are - 16430/400 & 16360.

The Option data suggests a broader trading range of 16300-17000 for the Nifty.
The immediate range is between 16400 and 16750 zones.

India VIX fell 0.35% from 13.45 to 13.41 levels indicates that bulls are in charge.

Source : Eureka

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