Technical View - Aug 3, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing upmove with range bound action in the last few sessions, Nifty witnessed an excellent upmove on Tuesday and closed the day higher by 245 points. Nifty opened on a positive note, later shifted into a gradual upmove for the better part of the session. The upside momentum got strengthened in the afternoon to later part of the session and Nifty registered a new all time high of 16146 towards the end and closed near the highs.

A long bull candle was formed on the daily chart that indicate a sharp upside breakout of the two months sideways range of around 15960 levels. This is positive indication and signal more upside in the near term.

The present upside breakout of 16K mark is likely to open a new uptrend for the market. Any consolidation or minor dips from here could be a buy on dips opportunity in the market. The upside breakout area of 15960-15900 is expected to offer a strong support for the market from here, as per the concept of change in polarity.

Nifty on the weekly chart has started to show a decisive upside breakout of the larger range at 16K mark. The formation of long lower shadow in the last three weeks hinted an early indication of upside breakout of the sideways range. Hence, one may expect some more upside in this intra-week to end up with decisive upside breakout as per long term charts.

Conclusion: The short term trend of Nifty seems to have turned up sharply. The much awaited upside breakout of broader high low range at 15960 could signal more upside for the Nifty ahead. The next upside levels to be watched around 16300-16500 in the next 6-8 sessions. Important support is placed at 15960-16000 levels.

Source : Equity Bulls

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