Technical View - Sep 15, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing a range bound movement in the last 5-6 sessions, Nifty picked up upside momentum and witnessed upside breakout of the range on Wednesday and closed higher. After opening on a slightly positive note, the market shifted into a sustainable intraday upmove, which continued for the whole session. Minor intraday dips in between were used to go long for the day. A new all time high was made at 17532 levels and Nifty closed near the highs.
A long bull candle was formed on the daily chart, which indicate an upside breakout of the narrow range movement of the last one week. This is positive indication and one may expect further upside in the short term.
The positive chart pattern like higher tops and bottoms is intact and the recent swing low of 17254 could now be considered as a new higher bottom of the sequence. The immediate support of 10 day EMA is intact and has offered support for the Nifty during recent sideways range movement.
Nifty on the weekly chart continued with uptrend after a pause of last week. This action signifies an uptrend strength of the market as per larger timeframe chart.
Conclusion: The upside breakout of range movement could be a cheering factor for bulls to make a comeback. One may expect further upside towards 17600-17700 levels in the next few sessions. Immediate support is placed at 17420 levels.