Technical Observation - May 5, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After showing sharp weakness in the last session, Nifty witnessed selling pressure at the highs today and closed the day lower by 0.95%. A reasonable negative candle was formed today after opening gap up. Today's opening upside gap has been filled completely.

The bearish island reversal pattern is open (both the gaps are still open) and the downside pattern target to be watched is at 8910 levels. The false downside breakout of rising wedge is also intact and Nifty is currently trading below the lower end of the edge at 9300 levels. Both the patterns are signaling weak bias for the market ahead.

The short term trend of Nifty continues to be weak. Any intraday rise upto 9300 could be a sell on rise opportunity. Immediate downside targets to be watched at 8900 for the next few sessions.

Source : Equity Bulls

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