Technical View - Aug 21, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness with range bound action on Thursday, Nifty witnessed an upside bounce on Friday amidst a range bound action and closed the day higher by 59 points. A small negative candle was formed today with gap up opening and the opening upside gap remains unfilled. This pattern indicate an emergence of buying interest from the lows, but the market continued with range bound action.

The opening downside gap of Thursday and upside gap of Friday remains unfilled/partially filled. This could be a positive indication for the short term and one may expect Nifty to retest the recent swing high of 11460 in the coming sessions.

We observe a broader sideways range movement in Nifty as per weekly timeframe chart and and the market is placed at the edge to move above the crucial long term resistance around 11450-11500 levels as per the concept of change in polarity. But, one needs to be careful about false upside breakout.

The short term uptrend status remains positive. Today's upside bounce could bring hopes for bulls to make a comeback. Nifty is expected to reach the upside levels of 11460-11500 levels by next week. Immediate support is placed at 11290.

Source : Equity Bulls

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