Technical View - Sep 30, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing consolidation movement on Wednesday, the choppy movement continued in Nifty on Thursday and the market closed the day lower by 93 points. After opening on a weak note, Nifty continued with it's weak trend for the whole session. Intraday upside recoveries have been used as sell on rise opportunity for the day and the Nifty closed near the lows.

A small negative candle was formed on the daily chart beside the small positive candle of Wednesday. This pattern signal that the consolidation movement or weakness could extend for next session. The formation of bullish high wave type candle pattern of Wednesday has failed to confirm on Thursday.

The immediate support of 10 period EMA on the daily chart has been broken marginally lower at 17650 levels. This is for the first time after 35-40 sessions that the Nifty closed below this 10 day exponential moving average on Thursday. Hence, the next important 20 day EMA is now offering support at 17475 levels.

The overall market breadth remained positive in last session and the broad market segments like midcap 100 and small cap 100 of NSE exchange have closed higher by 0.36% and 0.75% respectively. This is positive indication.

Conclusion: The market continued with choppy movement, but the broad market showed a resilience. Having moved below the immediate support of 17650 levels, there is a possibility of Nifty sliding down to the next support of 17475 levels amidst a range bound action in the next 1-2 sessions. There is a higher possibility of an emergence of buying interest from the lower levels. Immediate resistance is placed at 17750.

Source : Equity Bulls

Keywords