Technical View - Sep 1, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing an excellent upmove in the last couple of sessions, Nifty slipped into profit booking from the new highs on Wednesday and closed the day lower by 55 points. After opening on a positive note, the market has shifted into further upside in the early-mid part of the session. A new all time high was formed at 17225 levels and the profit booking has emerged from the day's highs. It later made an attempt to show upside recovery from the lows in the mid part, but was able to sustain the recovery and closed near the lows.

A reasonable negative candle was formed at the new highs, which indicate consolidation/minor weakness in the market. Having moved up sharply recently, the present consolidation/weakness could be considered as a buying opportunity in the market. There is a higher possibility of upside recovery attempt from the lows in the short term.

Nifty on the intraday timeframe like 60 min is showing a range bound action with weak bias. There is an absence of any sharp selling from near the highs. The intraday support of 10 period EMA and 20 period EMA are intact.

Though, Nifty declined on Wednesday, the overall market breadth was on the positive side and broad market indices like mid cap and small cap of NSE exchange have closed higher by 0.75% and 0.34% respectively. This is positive indication.

Conclusion: The short term uptrend in the market remains intact. Though, Nifty declined from the highs, still there is no formation of any significant reversal of present uptrend in the market. The consolidation/minor weakness could continue in the next 1-2 sessions, before showing upmove from the lows. Immediate support is placed at 16950 levels.

Source : Equity Bulls

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