Pre-Open Daily Tech View of Nifty Spot for 22.11.2021

By a staff reporter: Last trading day of the 4 days truncated week Nifty gave 3rd consecutive downward session.

Long negative candle on the daily chart with upper and lower shadow indicated high volatility.

Weekly Expiry High 17945 & Low 17688 Nifty closed at 17764 down by 133 points Day to Day basis.

Technically the overall chart pattern was negative. Last week Nifty bulls not only failed to cross & stay above 18225 < weekly projected 1st resistance > but also after breaking 20 DMA 18000, last day it corrected even 50DMA 17850 & slipped upto crucial support 17700. Closed around 17750 which is Neck Line support area of current H & Shoulder formation.

Though this is a good support & chances of bouncing taking stoppage from 17700 <+/- 20> but this is may be the whipsaw area. This level may even break as bulls main lower side fencing at 17610/550 range. As long as holds 17610-17550 chances of bouncing possible & that may move towards 17850/900. Actual Strength will resume only after crossing 18000 – 20 Dma.

But at current scenario Bulls should wait for further clear confirmation & cautious at higher ends.

On the upside :-

Some bouncing may possible if stys above 17788 & 17813 then initial barrier 17850.

Cautious around 20dma Hurdle 17850. Fresh positivity if only stays above 17850 then next move towards 17888/910. Very major Hurdle 17950-17995.

On the down side :-

Negativity if stays below 17730 & specially below 17700 for a move back to 17675 & then 17610. Major 17585.

The Option Table data indicates decent support at 17500 and reasonable resistance at 18000.

India VIX last closed at 14.86. Day to day basis -0.12 points. S:- 12.50/11.10 R:- 16.50/17.70.

Source : Eureka

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