Technical View - May 28, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp upside breakout in the last session, Nifty showed an excellent follow-through upmove on Thursday and closed the day higher by 175 points. A long bull candle was formed that closed above the immediate gap resistance of 9350 (13th May). This is positive indication.

Recently, Nifty was seen struggling during follow through upmoves and present market action signals strength of bulls to sustain the highs. We expect Nifty to surge further highs in coming sessions.

The formation of hammer type candle pattern and previous overlapping negative candles as per weekly chart has led to a strong base for the Nifty and to witness sharp upside bounce so far this week. The last week's low of 8806 could now be considered as a near term bottom reversal.

Short term trend of Nifty positive. Next overhead resistance is placed around 9580-9600 levels, which could be reached in the next 1-2 sessions. Near term upside targets to be watched around 9750. Immediate support is placed at 9350.

Source : Equity Bulls

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