Technical View - Aug 30, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a range bound action in the last three sessions, Nifty witnessed sharp upside bounce on Monday and closed the day higher by 225 points. Nifty opened on an upside gap of 75 points and surged up sharply in the early part of the trade. It later shifted into a range movement for the better part and more upside was seen towards the end and Nifty closed near the highs. New all time high was formed at 16951 levels.

A long bull candle was formed with gap up opening. Technically, this pattern signal a sharp upside breakout of small range of the last 6-7 sessions. This is positive indication and one may expect further upside in the short term.

Nifty on the weekly chart has started to pick up its upside momentum in the early part of this week- Monday, after a range bound movement in the last two weeks. Hence, the market is in a sharp uptrend as per smaller and larger timeframe chart and there is no sign of any reversal unfolding at the highs. If any decline from here could be a buying opportunity.

Conclusion: The short term trend of Nifty continues to be positive. Having reached nearer to our upside target of 17K mark, there is no sign of any tiredness at highs and the market is ready to move above 17000 levels in the coming sessions. A sustainable move above 17K could open the next upside target of around 17500 levels in the next two weeks. Immediate support is placed at 16750 levels.

Source : Equity Bulls

Keywords