Technical Observation - March 30, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After showing higher levels weakness on Friday, Nifty shifted into a profit booking mode on Monday and closed the day lower by 4.3%. A small body of negative candle was formed tody with gap down opening and upper shadow. The opening downside gap has been filled partially. Technically, this pattern indicates a profit booking in Nifty and also sell on intraday rise, post sharp upside bounce of last week.

This downside correction is so far not threatening any sharp fall, as it happened previously. Today's candle pattern indicates that the Nifty could end up its downward correction around 8100-8000 levels in the next couple of sessions.

Any formation of higher bottom in the next 1-2 sessions (compared to a last swing low of 7511 - 24th March) is expected to bring bulls back into action on the upwards.

Source : Equity Bulls

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