Technical Observation - Mar 3, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After showing high volatility on Monday, Nifty shifted into a sharp upside bounce today and closed the day on a hefty gains. A long positive candle was formed today, which is placed within a long range negative candle of Monday. Technically, this pattern indicates an inside-day type candle formation. Normally, a formation of inside day at the reasonable lows / supports could indicate a near term bottom reversal (after the confirmation).

We observe a formation of larger consolidation pattern near the crucial lower support of 11000-10900 levels (support as per the concept of change in polarity on the weekly / monthly time frame chart). Hence, one may expect further upside in Nifty in coming session.The next overhead resistance to be watched at 11420 and immediate support is placed at 11210 levels.

Source : Equity Bulls

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