Technical Observation - March 16, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After an excellent upside bounce from the lows on Friday, Nifty continued to bleed today and closed the day on a deep cut of around 7.6%. A long negative candle was formed on Monday, that paced beside the large positive candle of Friday. Technically, this pattern indicates failure to continue with follow-through upmove.

Today's weakness seems to have not nullified the positive impact of sharp lower recovery of Friday. As long as the swing low of 8550-8600 is protected, there is a possibility of upside bounce from the lows. But, the volatility is expected to be high in the short term.

Source : Equity Bulls

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