Technical Analysis for Today`s Market ( 22 September 2021 ) is based on Market Trend of previous Trading Sessions.
After showing weakness from the highs in the last couple of sessions, Nifty came back strongly from the lows on Tuesday and closed the day higher by 165 points. After opening on a positive note, the market has failed to sustain the opening gains and slipped into minor weakness in the early part of the session. A sharp buying has emerged from a day’s low of 17326 levels and this upside momentum continued for rest of the session and the Nifty closed at the highs.
A reasonable positive candle was formed on the daily chart with minor lower shadow. Technically, this pattern indicate an upside bounce in the market after a quick decline of last two sessions. Smaller degree of positive chart pattern like higher tops and bottoms continued as per daily chart and Tuesday’s low of 17326 could now be considered as a new higher bottom of the sequence. Hence one may expect further upside towards new all time high in the near term.
The daily 10 day EMA has been in a crucial role with regards to a near term uptrend of Nifty. In the last 30 sessions, the 10 day EMA has been offering support to the Nifty on dips and on Tuesday, the market sustained above this moving average support at 17425 after the intraday violation of it. This is positive indication and one may expect further upside.
Conclusion: The market seems to have reversed up surprisingly after a short period of downward correction. This pattern indicate a strength of present upside momentum and emergence of buying after a small dips. The present upside bounce from initial moving average support could signal possibility of more upside towards 17800 levels in the next few sessions. Immediate support is placed at 17425 levels.
The Market Wrap-up for Today`s Market by Shrikant Chouhan , Executive Vice President, Equity Technical Research at Kotak Securities
“After two days of sharp correction, benchmark indices witnessed a sharp pull back rally while Nifty found support at 17326 to reverse the falling trend. Technically, the texture of the sharp reversal formation near the 10 day SMA suggests further uptrend from the current level. We are of the view that while the short-term trend still looks up, uncertain global market conditions could see the Nifty within the range of 17650-17450 levels. For day traders, as long as the index is trading above 17450, pullback rally is likely to continue up to 17600-17650 -17680 levels. On the flip side, index below 17430, the uptrend would be vulnerable.”