Pre-Open Tech Analysis for 21.01.022

By a staff reporter: 

Nifty spot last closing 17757. D to D basis Down - 181 points.
3rd consecutive strong bear candle indicating nervousness.

In 3 days Bearish 3 Black Crows formation in daily chart. Corrected from 18350 to 17650~ = exactly 700 points. Yesterday after breaking 1st slab 20dma 17750 low made was 17648. Took Support before technically 2nd slab crucial support 17600 & then in last leg we got almost 150 points short covering.

Though settled was just above 20dma 17750 but there was no clear cut signal of bottom formation & as per current trend further re-testing or more down side possible if any reverse action fizzle out from higher ends say in between 17850 to 17950 range.
Reverse Rally only resume & effective if only sustains above 18030 & 18130.

Negativity mainly due to FII selling, elevated oil prices, rising inflation concerns and caution ahead of Fed meet.

Source : Eureka

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