Technical View - Sep 9, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
2021-09-09 20:55:43 (Time Zone: IST)
The range bound movement continued in the market for the fourth consecutive sessions on Thursday and the Nifty closed the day higher by 15 points. After opening on a weak note, the market shifted into a narrow range movement, which continued for the whole session. A sustainable upside recovery was seen towards the later part and Nifty closed near the highs.
A reasonable positive candle was formed on the daily chart, which indicate a continuation of range bound action in the market. There was no sharp weakness on the day of weekly F&O expiry of Thursday and a sustainable buying has emerged towards end. This could signal chances of an upside bounce in the coming sessions.
The minor degree of higher tops and bottoms continued in Nifty as per daily timeframe chart. Wednesday's swing low of 17254 could now be considered as a new higher bottom of the sequence. Previously, the market has shifted into 2-3 day's consolidation before showing upside bounce from the lows in the past.
Nifty on the weekly chart formed a small negative candle with minor upper and lower shadow. Technically, this formation indicate a spinning top type candle pattern at the new highs. As happened in the past, the market could now shift into a broader high low range of around 17600-17200 levels by next week.
Conclusion: The short term trend of Nifty continues to be range bound. Having recovered in the later part of Thursday, there is a possibility of an upside bounce in the next early part of next week before encountering another resistance around 17500-17600 levels. Immediate support is placed at 17200.