Technical Observation - April 16, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

Nifty witnessed range movement with positive bias on Thursday and closed the day on a decent gains. After witnessing a sharp weakness from the highs on Wednesday, Nifty failed to show follow through weakness and regained the support of 8900 levels, after intraday violation on the down side.

Presently, the lower area of 8900 and 8850 is acting as a key support for the market and Nifty is currently stuck at the overhead resistance of around 9050-9100 levels. Hence, one may expect choppy movement in the next session and any decline down to 8700-8600 levels could be a buying opportunity in the near term.

The overall chart pattern indicates a possibility of range movement with limited decline and there is a possibility of sharp upside bounce from the lows in the next few sessions.

Source : Equity Bulls

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