Pre-open Tech view of Nifty spot for 18.11.2021

By a staff reporter:  Yesterday Nifty Opened at 17940 then though several times attempted to cross and stay above 18000 mark but sipped from 20DSMA hurdle 18022 < day’s High >. The Benchmark was remained under pressure for major part of the session and even corrected below crucial 17900 < day’s low 17879 > and finally settled at 17898 down by 100 points.

Nifty not only formed bearish candle on the daily chart with an upper shadow, indicating sustained selling pressure but also formed a lower high & lower low formation compared to the previous session which indicated that we may see an extended selling pressure ahead of weekly options expiry but bulls hope that to be defended by themselves either at/ before 50DSMA 17840 to 17800 range & extended basis 17770.

Below that closing basis more negativity otherwise further bouncing & range bound in between 17800 to 18000 < +/-20/30 pts >. If Nifty trades above 20 DSMA 18030 current bearishness to be negated & further bullish attempt possible towards 18114 & 18225.

But as a contra basis Bears may use any pull back towards 18000-18040 as an opportunity for sell subject to not to cross 18060/18114 mark.

On the upside :-

•    Above 17942 Intraday basis Resistances are 17976—17997-18031 <20dma >.

•    Swing basis hurdles are 18060-18114.

•    Positional basis Fresh strength will resume only above 18225

On the down side:-

•    Below 17870 expected intraday basis immediate support at 17844 < 50dma >. If breaches then only intra basis may correct upto 17820 & even 17790 but that should hold & chances of bouncing.

•    Swing basis major lower supports are 17765—17738 & 17700 if breaches the range 17844-17790.

•    Positional basis Fresh Bear strength if decisively breaks 17600.

The Option Table data indicates decent support at 17800 and reasonable resistance at 18000.

Source : Eureka

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