Technical Observation - May 19, 2020 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp downside breakout in the last session, Nifty showed upmove with lack of strength to sustain the highs today and closed the day on a minor gains. A small positive candle was formed with gap up opening. Today's upside gap is almost filled (left with small margin). This pattern signals a weak upside bounce in the market.

Today's inside day type candle pattern also signals a possibility of further consolidation movement in the market or an attempt of minor upside bounce in the short term, but Nifty is unlikely to sustain the highs. Any upside from here could encounter strong resistance around 9050-9100 levels in the next 1-2 sessions.

A decisive move below the immediate support of 8800 levels could drag Nifty towards 8500 levels in the near term.

Source : Equity Bulls

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