Pre-Open Daily Tech view of Nifty Spot for 12.10.2021

​By a staff reporter : 

Pre-Open Daily Tech view of Nifty Spot for 12.10.2021

Yesterday Nifty after slight subdued opening at 17867 & tested low at 17839 – bounced from tentative support area 17840 -17820 zone - 5dma and then moved up smartly, not only crossed double top hurdle 17950 of last week’s “V” shaped recovery but also scaled 18000 mark for the first time.

But as our expectation though intraday basis gained another 90 points from 17950 & printed the peak at 18041 but as early mentioned it was whipsawed area even after crossing 17950-18000 mark slight profit-booking was witnessed in the 2nd phase of the session and Nifty finally settled at further 17950 area at 17946 up by 50 points day to day basis.

Though bullish candle formation but on daily frame with long upper shadow due to late hour selling.

As technically it is called a shooting star pattern at the top of the rally, which is an indication of an uncertainty in the market and technically should cautious as this rise with lower average volume & not supported by major indicator RSI’s movements.

So traders should better focus on dips as long as holds 17845-815 < 5dma/ema >. If breaches then only next slab for buying more strong support area 17777 – 9ema & 17747 <50% retracement level of the recent rise from 17450 to 18050 (rounded)>.

17700 should not break to maintain this uptrend to move towards 18100 and 18200 levels subject to cross & sustain above 18050.

Summary :-

NIFTY SPOT Last closing & pivot 17945

Intraday basis:-

On the Down side :- Below 17907/883 then initial support at 17845 & major 17811. Very major for swing basis 17777 & 17747.

On the upside :- Fresh positivity only further above initial resistance 17960 then other resistances are 18008-18046 & very major 18086 to 18133.

So Short term basis, Strong support can be seen at 17700 level, while the 18200 level may act as an immediate resistance.

MONTHLY BASIS MAJOR POSITIONAL RANGE - UPSIDE :- 18300/400 & DOWNSIDE :- 17600/500.

As per option data current battle area is 18000 & reasonable range is 17800 to 18200.

India VIX day to day basis up 2.76% & closed at 16.08 but low tested at 12.23.

SGX Nifty currently almost -90 points amid cautious sentiment on Wall Street as Big Tech, Energy Give Up Gains. Last night Dow -250 points.

Source : Eureka

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