Technical View - July 15, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
The upside momentum with range bound action continued in the market for the third consecutive session on Thursday and Nifty closed the day higher by 70 points. After opening on a positive note, the market continued its range bound action with positive bias in the better part of the session. New all-time high was formed at 15952 in the afternoon and Nifty later shifted into an intraday consolidation towards the end.
A reasonable positive candle was formed on Thursday and the market placed near the all-time high towards the close. This pattern indicate an attempt of upside breakout of the larger month old consolidation pattern at 15915 levels. But, the lack of strength at the highs could dampen the effort of bulls to sustain above the hurdle. Further consolidation at the highs could bring bears into action to witness next round of downward correction from the highs, as happened in past.
Nifty on the intraday chart like 60 mins is showing sideways range movement in the last four trading hours of Thursday. Such patterns of recent past have eventually resulted in an upside breakout of the intraday range movement. The immediate intraday support of 10 period EMA is going to be crucial at 15900 levels. Any movement below this area for few hours on Friday could drag index into a reasonable downward correction.
Conclusion: The short term trend of Nifty continues to be positive with range bound action. The lack of strength in the upside momentum at the hurdle and poor market breadth of Thursday could raise doubt on a decisive upside breakout of larger consolidation band at 15920-15950 levels. Emergence of strong upside momentum above 15950 is expected to open next higher levels of 16100 in the short term.