Pre-Open Tech View of Nifty Spot for 19.10.2021

BY A STAFF REPORTER 

Yesterday after 3rd consecutive Gap up opening at 18500 Nifty Spot printed day’s low at 18445 and then through out the day hovering in a narrow range exactly between 100 points < H: 18543> & finally settled at 18477 up by 138 points or 0.76% day to day basis.

Another Gap up – another Historic High – printed new peak in uncharted open sky maintaining higher high and higher bottom formation, which suggests still some strength left & some more upside still possible.

Though in last 5 trading sessions Nifty has rallied 704 points <17839 to 18543 > at a stretch mainly by 3 Gaps & more after break out 17950 mark & rally was driven by retailer mainly suggesting time to be cautious but still RSI 77.60, not even crossed 80. Last time High was 86 almost.

So, as long as holds 18400-18390 potentiality is still there to test 18600 to 18666 even 18700 above 18500/530.

18333 & 18181 – 3dma- very short term & 5dma – short term crucial support areas.

Therefore, on the down side 18300/18200 & on the up side 18600/18700 will be the expected coming range.

One think as per chartically though Gap up, though green closing the body of the candle was very narrow & that was red as closing below opening < 18477<18500>. This may be the indication or some signal of exhaustion but that view to be negated if Nifty bulls able to cross & stays above last day’s high 18543 then another 150/200 points trending move possible.

Similarly on the flip side, if Nifty bears able to break yesterday’s low 18445 then that move down side also possible to fill the Gap.

So on the up side cautious stance should be maintained around 18531-18576 & 18600/18629 above 18450 & specially above 18500.

On the down side :- Below 18430 bears action may possible towards 18390—18375—18336.

The Option Table data indicates decent support at 18300 and reasonable resistance at 18600.

India VIX rose yesterday almost 9% as closing basis at 17.18 taking support at 14. Res 19.50.

Source : Eureka

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