Technical Observation - May 27, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sideways range movement in the last three sessions, Nifty witnessed sharp upside bounce today and closed the day higher by 3.17%. A long bull candle was formed, that has moved above the resistance of upper range around 9150-9180 levels and closed higher.

In the previous two occasions, Nifty made an attempt to stage upside breakout of the range movement but failed to sustain the highs for long period. Hence, a sustainable upmove above 9300 in the next 1-2 sessions could open up sharp follow-through upside the near term.

Formation of hammer type candle pattern on the weekly chart and present upside bounce could signal a possibility of sustained upmove in the near term. Immediate support is placed at 9180 and the next upside targets to be watched around 9500 in the next few sessions.

Source : Equity Bulls

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