Pre-Open daily Tech view of Nifty & Bank Nifty Spot for 22-12-2022
New Update
BY A STAFF REPORTER
Yesterday Opening was at 18435 & High 18473 then corrected upto 18162 & finally settled at 18199. Day to day basis -185 points or -1% & formed a Bearish Engulfing candle. Correction amid a surge in COVID-19 cases globally. Apart from that, fear of recession and selling by FIIs too, put pressure on the market. Indicator RSI also is lying below 45 indicated a lack of momentum.
Though Bearish Engulfing pattern indicated bearish reversal & more weakness but some how bulls have managed to sustain above important support 18133 <50DSMA & recent Low>. On the downside if breaches 18133 then very strong lower end supports are 18087—18018. Psychologically 18000-17960 may be a crucial level & that should hold.
On the flipside, immediate hurdles are above 18260/290 – 18333/366. As long as the index trades below <5DSMA> 18366 weakness will continue. Only above that short term basis major Resistances at 18400/440.
Last day’s High & 30DSMA @18475 & 20DSMA i.e. 18550 both are very strong barriers. Fresh bullish move only above that & if the Nifty sustains above the 18550 level then the corrective view will be negated.
The Option data indicated that the Nifty may trade in the 18000-18500 range in the coming sessions.
India VIX gave a Strong closing. Surged 13% to 15.56 from 13.78 level is quite alarming for bulls. Above 15.85 Resistances are 17.20—18.60 & 20.50. Support 14.14.
Bank Nifty Spot opened higher at 43526 and high printed at 43615 but failing to hold that vertically corrected huge. Not only broke 20DMA 43300 but also 30Dma 43000 & corrected upto 42364 & finally settled at 42618. Day to Day basis down 742 points, or 1.7 percent and formed a big bearish engulfing candlestick on the daily chart, indicating weakness ahead.
On the upside major resistance at 43000 & on the downside major support level at 42000.
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