Technical View - Aug 17, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing an upside breakout of a smaller high low range recently, Nifty showed follow-through upmove amidst a volatility on Tuesday and closed the day higher by 51 points. Nifty opened on a slight weak note and witnessed upside recovery from the lows in the early part of session. Minor intraday weakness of mid part was resulted in a buy on dips opportunity and late session upmove was seen towards the end.

A reasonable positive candle was formed on a daily chart and the new high was formed at 16628 levels. Formation of lower shadow signal buy on dips opportunity in the market. This is positive indication and it indicate an uptrend continuation pattern.

Presently, Nifty is showing a sustainable upmove with range bound action. On the weekly chart previous 7-8 weeks range movement has resulted into an upside breakout in the past (May-21) and similar market action has observed recently (early part of Aug). Hence, there is a higher chance of further upside for the Nifty for next 1 -2 weeks, before shifting into another broader high low range movement.

Conclusion: The short term trend of Nifty continues to be positive. There is a possibility of further upside with range bound action for short term. The next upside levels to be watched 16800-16900 levels in the next few sessions. Immediate support is placed at 16540 levels.

Source : Equity Bulls

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