Technical Observation - March 26, 2020 Nagaraj Shetti - Technical Analyst, HDFC securities

Nifty witnessed a fine follow-through upmove on Thursday, after a sharp upside bounce of Wednesday. Nifty closed the day on a smart gains of around 323 points. A reasonable bullish candle was formed, which is the consecutive 3 session gains for the market in the last one month.

This three consecutive gains was not visible during sharp downtrend of the last one month. This is positive indication. Hence, the recent swing low of 7511 (24th March) could now be considered as a near term bottom reversal in the market.

Hence any decline from here is expected to form a new higher bottom around 8200-8000 levels. Any long positions need to place a stoploss of 7500 levels.

Source : Equity Bulls

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