Technical Observation - March 6, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

Nifty witnessed sharp weakness today amidst a weak global cues and closed the day on a deep cut of 279 points. A small positive candle was formed today with gap down opening and with minor upper and lower shadow.

Technically, this pattern indicates a consolidation pattern at the lows after a sharp negative opening. we observe a second sharp opening downside gap today (after the formation of initial gap on 28th Feb). These two unfilled down gaps could mean Nifty is in a sharp trended decline.

The underlying trend of Nifty continues to be down. Further weakness from here could find next round of support around 10750-700 levels in one week, where one may expect minor buying from the lows.

The expected lower levels buying could be short lived. The next crucial downside targets to be watched for the Nifty is around 10600-10500, which could be achieved in the next 1-2 weeks.

Source : Equity Bulls

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