Technical Observation - March 20, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After the formation of high wave type of candlestick pattern on Thursday, Nifty witnessed sharp upside bounce on Friday and closed the day with hefty gains of around 5.8%. A long bull candle was formed on Friday, which indicates a short term upside reversal pattern. Hence, the Thursday's swing low of 7832 could now be considered as an important support for Nifty. We observe a formation of identical type negative candle on the weekly chart (similar to last weeks candle-long bear candle with long lower shadow).

The overall trend of Nifty is still negative, Friday's upside bounce has not reversed the underlying trend so far. Any decline from here could offer support around 7800-8000 levels in the coming week.

Source : Equity Bulls

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