Technical View - Sep 16, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing an upside breakout of the range movement on Wednesday, Nifty continued with follow-through upmove on Thursday and closed the day with handsome gains of around 110 points. After opening on a positive note, the market showed minor intraday dip in the early part of the session. The upside momentum continued in the mid to later part of the session and Nifty closed near the highs. A new all time high was registered at 17644 levels.

Another long bull candle was formed on the daily chart, which is back to back for the two consecutive sessions. This action signal a decisive upside breakout of the range bound movement. This pattern also reflect ongoing strength of uptrend in the market. Though, Nifty placed at the new highs, still there is no indication of any tiredness or reversal pattern at the highs. This is positive indication and signal more upside ahead.

Banking/PSU Banking sectors were on limelight on Thursday with exceptional upside breakout of around 2.7% in Bank Nifty and 5.43% in PSU Banking sector. There is a possibility of some more upside towards 38400-38500 levels in the Bank Nifty by next week.

Nifty on the weekly chart continued its strong upside momentum, after a pause of last week. The expectation of small range formation on the monthly chart seems to be diminishing, as the market keeps on extending gains without any rest. This broad based buying signal formation of another long bull candle in monthly chart. This suggest more upside for the market in coming sessions.

Conclusion: The upside momentum continued in the market with Banking and Financial segments have started to outperform. The overall positive chart pattern of Nifty from smaller to larger timeframe could hint next possible upside target of 18K in the next 1-2 weeks. Intraday corrections can't be ruled out in between. Immediate supports to be watched at 17470 levels.

Source : Equity Bulls

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