Technical View - Sep 2, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
2021-09-02 18:24:21 (Time Zone: IST)
After showing higher levels weakness on Wednesday, Nifty witnessed a sharp follow through upmove on Thursday and closed the day higher by 157 points. After opening on a positive note, the market continued with sustainable upside momentum for the entire session. Minor intraday dips in between were used as buy on dips opportunity. New all time high was formed at 17245 levels and the Nifty closed near the highs.
A long bull candle was formed on the daily chart, that surpassed a reasonable negative candle of Wednesday and closed above it. This pattern has nullified a minor negative/consolidation pattern on the daily chart and this display a strength of upside momentum in the market. This is positive indication and one may expect more upside in the short term.
Nifty is in a sharp trended upmove over the last 5-6 sessions and the interim correction has been limited to one session so far-Wednesday (compared to 2-3 sessions of consolidation of past). This indicate a strength of upside momentum for the short term.
Nifty on the weekly chart formed a long bull candle as of now (one more sessions to go). This pattern indicate a decisive upside breakout of small range movement of the last few weeks.
Conclusion: The short term trend of Nifty is in a strong mode and the broad market indices were also in driver's seat. One may expect further upside in the next 1-2 sessions, before showing another round of consolidation or minor profit booking from the new highs. The next upside levels to be watched around 17500 and immediate support is placed at 17150.