Technical View - Aug 24, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing upmove with high volatility on Monday, Nifty witnessed a sustainable upmove on Tuesday and closed the day higher by 128 points. Nifty opened on a positive note, showed intraday consolidation in the early part of the session. A sustainable upside has occurred from a day's low of 16500 levels and the upward momentum continued till the end. Minor consolidation in between has turned out to be a buy on dips opportunity for the day.

A small positive candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicate an uptrend continuation pattern. Tuesday's upmove was accompanied by positive overall market breadth and out performance in the broad market indices like mid cap and small cap segments of NSE exchange. This is positive indication and signal more upside in the short term.

The minor higher bottom has been confirmed in Nifty at the swing low of 16376 of 20th Aug. The gains of Tuesday could suggest that the Nifty could move up further and test/move above the recent all time high of 16701 in the next few sessions.

Conclusion: The short term uptrend of Nifty seems to have strengthened, after a display of lack of strength in the last couple of sessions. The upmove with positive market breadth of Tuesday could hint at a possibility of more upside and revisit of recent all time high of 16701 levels or higher in the next 1-2 sessions, before showing next round of minor downward correction from the highs. Immediate support is placed at 16550 levels.

Source : Equity Bulls

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