Technical View - Aug 27, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing range bound movement in the last couple of sessions, Nifty shifted into a reasonable upmove on Friday and closed the day higher by 68 points. After opening on a flat note, the market slipped into an intraday weakness in the early part of the session. A sustainable upmove has emerged from a day's low of 16565 levels and the upmove continued for the mid to later part of the session. A new all time high was formed at 16722 levels.

A reasonable positive candle was formed on the daily chart with lower shadow. Technically, this pattern indicate an attempt of upside breakout of minor high low range of the last two sessions. The market not showing any sharp profit booking after a new high formation on Friday could signal a chances of more upside in the short term.

The immediate support of daily 10 period EMA has resulted in an upside bounce from the lows on Friday. Nifty on the weekly chart formed a small positive candle with lower shadow. This weekly pattern indicate an uptrend continuation pattern in the market after a small range movement.

Conclusion: The lack of strong selling enthusiasm at the new highs has resulted in a range bound action and small upside breakout of the said range movement. This is positive indication and there is a possibility of further upside in the short term. The next upside levels to be watched around 16900 by next week. immediate support is placed at 16550 levels.

Source : Equity Bulls

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