Technical Observation - April 8, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After witnessing a sharp upside bounce on 7th April 2020, Nifty continued to show follow-through upmove in the better part of Wednesday's session amidst a volatility, but closed the day on a negative note.

A small positive candle was formed on Wednesday with long upper shadow. Technically, this pattern could indicate an emergence of selling pressure at the hurdle of 9100 levels.

The Nifty is currently moving in an ascending type channel pattern and witnessed a profit booking from the upper channel line around 9100 on Wednesday. We observe a formation of consistent higher highs in the last couple of weeks.

Hence, there is a possibility of minor downward correction in the short term, which is going to be a buy on dips. This could coincide with the formation of higher bottom around 8500-8550 levels.

On the way up, a sustainable move above 9100-9200 levels could push Nifty towards the next upside targets of around 9800-10,000 levels in the next few weeks.

Source : Equity Bulls

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