Technical View - Sep 13, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing an upside bounce from the lows amidst a range bound action on Thursday, Nifty shifted into a consolidation with weak bias on Monday and closed the day lower by 13 points. After opening on a negative note, Nifty slipped into weakness in the early part of the session. A fine intraday upside recovery has witnessed from a day's low of 17269 and the market recoup most of the intraday loss towards the end and closed near the highs.

Another small candle was formed on the daily timeframe chart with long lower shadow. Technically, this pattern indicate a sideways range movement in the market. The market action of the last five sessions signal a lack of sharp selling participation in the market from the new highs. This pattern could eventually result in a upside breakout of the sideways range in the short term.

In the last one month, the downward correction from the high was minimal (in terms of consolidations or range bound action). The positive chart pattern like higher highs and lows was observed on the daily chart and present consolidation or minor weakness is likely to form a new higher bottom in the next 1-2 sessions, before showing another leg of sharp upside bounce.

Conclusion: The short term trend of Nifty continued with range bound action, but the overall market breadth has placed at the positive side. The Nifty is expected to form a higher bottom reversal around 17250 levels (near the support of 10 day EMA) in the next 1-2 sessions before witnessing another round of upside bounce. Immediate resistance to be watched at 17450 levels.

Source : Equity Bulls

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