Weekly Tech Analysis of Nifty & Bank Nifty Spot_ 20.12.2021

By a staff reporter:

PART I -

Nifty weekly closing below 17000 at 16985. Week to Week basis down -526 points or corrected exactly 3%. As per weekly chart created a Bearish Marabozu candle which signified strong negativity attempting to test 16800 & even below that.

Last week Nifty started with 100 points false break out surging but failed to cross above 17650 -High initially 17639, then within a same day vertical slipped almost 300 points ( roughly speaking 17650 to 17350 ). Then next 3 days Market was in complete range bound stage with negative bias mainly in between 17400 to 17200. Expectation of trending move either side beyond this range emerged.

Actually on Friday break down occurred, like Monday we have seen another big correction started below 17300 < 100 Days SMA & 5 Weeks SMA > & Weakness intensified specifically below 17200 < 20 Weeks EMA>. Friday turned to Black Friday -263 points or -1.50% daily basis correction. Low made at 16966, formed a strong bearish candle as per daily chart.

Hawkish central banks, inflation concern, growing worries over Omicron, Negative global cues, continued FII selling, absence of any positive trigger worsen the market sentiments. All sectors almost hammered down except IT helped by weaker rupee. Traders should be very cautious specially at or before any higher ends as rather than easily crossing hurdles chances of fizzle out is high after any pull back. So, traders are advised to maintain their negative bias in the market for next few days.

Source : Eureka

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