Nifty Spot Weekly Technical view _15.11.2021

By a Staff Reporter: Last week Nifty’s movement started with a positive note from 17836 to 18087 but failed to cross 20DSMA hurdle 18100 and slipped from there and remained under pressure for the next three sessions amid weak & volatile Global cues due to inflation fears and continued FII selling. But weekly basis low not broke 17777 which was crucial 50DSMA support worked as a Laxman Rekha.

After 3 days consecutive fall on last Friday, Nifty opened with a huge Gap more than 100 points < 17873-17977 > & then maintained the uptrend throughout the session, though initially corrected and partially filled the Gap but bounced just before 17900 and after breaking 30DSMA & psychological barrier 18000 for 2nd time then one way rally not only crossed 20DSMA 18080 but also printed a peak at 18123 and formed a strong bouncing bullish candle.

Nifty finally settled at 18102, day to day basis up 1.28% or +229 points and week to week basis gained 186 points or 1%. Therefore, in Last week we got a range bound volatility between 17800 to 18100 i.e. 300 points.

But Technically if we consider last 1 month chart pattern then it is showing almost a Head & Shoulder formation & which one may be a cause of concern if it breaks Neck Line Support of H&S i.e. around 17650/17600 mark closing basis decisively then only problem may arise for Bulls otherwise as long as it holds initially 17777 & finally 17650/600 Bulls are safe & strategy should be buy on dips & bulls aim to cross 18400 and even generate a new high above 18600 to move towards 18800.

•    Weekly basis 17650/600 strong swing support & that should hold.

•    Positional Tgt 18230—18330/400. Major 18600 & extended 18800.

•    In case failed to hold 17600 then more bear grip & 17400 & even 17100 possible.

Source : Eureka

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