Technical Observation - March 23, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

The blood bath continued in Indian market, as Nifty tanked by around 1135 points on Monday. The one day upside bounce of Friday has failed to hold the market sentiment and the Nifty closed near the low.

The support of 7850 levels (swing low of Dec 2016) has been broken sharply on the downside and Nifty closed the day lower. So far we have seen one day upside bounces have been negated in the subsequent sessions. This pattern could indicate a strength of downside momentum in the market.

The near term trend of Nifty continues to be down. The next downside targets to be watched around 6825, which is an important bottom reversal of Feb 2016.

Source : Equity Bulls

Keywords