Technical Observation by Nagaraj Shetti - Technical Analyst, HDFC securities

The Nifty witnessed heavy selling today on the back of weak global cues (mainly due to a fast spreading of Corona virus outside China) and the Nifty tanked by a historical loss of 430 points. After opening on a sharp downside gap of 250 points, the selling pressure continues for the whole session.

A long negative candle was formed today with opening downside gap. The positive element created by the formation of hammer and a positive divergence in the RSI of 27th Feb was negated completely in today's session.

Nifty as per weekly chart formed a long negative candle in this week, that moved down as per the larger negative sequence of lower tops and bottoms.

The near term trend of Nifty continues to be weak, the next lower supports to be watched around 11,000-10900, which could be achieved in the next few sessions.

Source : Equity Bulls

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