Pre-Open Tech Analysis for Nifty spot _18.01.2022

BY A STAFF REPORTER

Yesterday Nifty Spot gave an another green closing which is consecutive basis 7th higher high formation. Initially after lower opening Nifty took support at 18228 <5 dma 18220> & then rest of the session advanced gradually & hit high at 18321 & finally settled at 18308, Day to day basis up by 52 points. 

Though some sort of exhaustion at higher ends and as continuous basis 7 consecutive days rising & day by day formed higher bullish candle so rather than higher ends break out above 18350 better is slight cooling & 1st indication below 18200 <+/- 20> & 18100 & fill the last rising time Gap in between 18128—18080. This is the normal correction even upto 18000 & this is healthy sign for next rally towards 18400/440 & 18555/600 – all time high. 

*Swing basis* a buy on dips approach is better as the risk reward ratio is not favorable at current levels. The support for the Nifty is at 18140-18080. Traders should cautious at higher. 

Otherwise, at a stretch vertical rising is risky current RSI is 71, as per daily chart trying to enter into overbought zone though weekly chart saying potentiality not only to test 18600 but also cross & move beyond that, print a new high.

Source : Eureka

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