WEEKLY TECH VIEW OF NIFTY SPOT_11.10.2021

By a Staff Reporter:

Nifty at Record close Post RBI Policy at 17895.

Week to Week basis Nifty rose 2.07% or 363 points.

Stimulating factors that helped the benchmark to close at record high are :- Easing global worries with the fall in US bond yields and oil prices, mixed Global cues, expectations of better quarterly earnings, dovish policy measures by RBI and Moody’s upgrade India outlook to stable from negative.

Coming week, investors’ focus will shift to Sep Qtr earnings. More than 50 com. will declare their Qtrly no. including Infy, Wipro, Mindtree, HCL Tech, HDFC Bk, and Avenue Supermarts etc. Apart from that other key focus items are:- Macro Economic Data – IIP, CPI & WPI & Status on US Bond Yields, Dollar index, Indian Rupee, Crude Oil Pr, FII Flow and Global cues.

Technically, as per Weekly chart after last week Red candle this week Nifty formed a long bullish solid green candle almost both side without any tail i.e. OP = Low @ 17600~ & CL = High i.e. 17900~ < roughly>

Accurately, Weekly Range is determined by 2 figures – on the down side 17647 that is 5 Weeks Simple Moving Average support & on the upside 17947 that is the 3 consecutive weeks almost same ceiling area.

After this weekend Technical Indicator Weekly RSI closed at 76 from 73.Previous week it was corrected from highly over bought area 86.

Now Technically as per Daily chart, last Friday after almost 100 points Gap up opening at around 17888 & throughout the day 100 points narrow range bound move in between 17840 to 17940 finally settled just below 17900 exactly at 17895, Day to Day basis rose 104 points.

As Op & Cl almost same, so candle pattern as per Daily Chart almost Doji or Spinning Top Type and that formed at the edge of the Top. Therefore, indication of indecisiveness.

As Nifty facing the crucial double top hurdle of “V” shaped formation i.e. around 17950 range, so for coming week bulls should cautious as long as Nifty staying below that hurdle or even after crossing any false break out – whipsaw area in between 17960 to 18030.

On the Upside:- If bulls manage to able to cross that hurdle then fresh buy & we may see good move towards 18400/500 in near term. Weekly R: - 18030—18166—18230—18391.

On the Downside:- If failed then we may see some consolidation in the range of 17300-18000 zone, Weekly S:- Immediate Sp - 17840-17770 – 5dma, then 17717 – 9 dma, 17647 – 20dma & then as a break down 17500 <30dma >-17444.

IndiaVIX weekly basis 9% down, closed at 15.65.

WR:-17.34-19.04—20.48—22.18 & WS :- 14.20—12.76—11.06 & 9.62.

Source : Eureka

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