Technical Observation - March 18, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

The sharp down trended move continued in the market for the third consecutive session on Wednesday and Nifty witnessed a decline of 498 points. A long bear candle was formed and, that closed below the recent swing low of 8555 levels.

The positive sentiment created on Friday's (13th March) sharp upside bounce seems to have nullified. As Nifty moved below the low of 8555 in three sessions after the bounce. This is not a positive sign and one may expect further weakness in the short term.

Having declined sharply, an attempt of minor upside bounce from the lows can't be ruled out in the near term. The next downside to be watched around 8000-7800 in the next 1-2 weeks.

Source : Equity Bulls

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