Technical Observation - April 22, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After showing sharp weakness on Tuesday, Nifty witnessed an excellent bounce on Wednesday and closed the day higher by 2.29%. We observe formation of long bull candle on Wednesday, which signals a buy on dips opportunity.

The positive sequence of higher tops and bottom continued and Tuesday's low of 8909 could now be considered as a new higher bottom of the sequence. Hence, one may expect further upside in the coming sessions.

Nifty is currently moves in a rising wedge type formation and is currently moving up from near the lower end of wedge at 8850 levels. This rising wedge formation, after a sharp down trend of March and April 2020 could hint at negative pattern implication in the near term. But this negative implication could only activate on a move decline 8800-8750 levels.

The short term trend of Nifty is positive, one may expect further upside in the coming sessions. Upside levels to be watched at 9350-9400 levels in the next few sessions and immediate support is placed at 9050.

Source : Equity Bulls

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