Technical Observation - April 17, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After showing an upside bounce from the lows on Thursday, Nifty witnessed a sharp upmove on Friday and closed the day higher by around 3%. A small negative candle was formed today with long lower shadow. Technically, this pattern indicates a formation of negative hanging man type candle pattern. But having placed at the edge of upside breakout of the hurdle (9300) and near the lower end of the up leg, the above negative pattern implication could be ruled out. Hence, this is positive indication.

Presently, Nifty makes an attempt to stage upside breakout of the channel pattern at 9250-9300 levels. This is positive signal and a sustainable move above 9300 levels could mean more upside in the near term.

Nifty as per weekly chart formed a small positive candle with lower shadow, which signals a buy on dips opportunity in the market.

The short term trend of Nifty continues to be positive, the next upside targets to be watched around 9550-9600 in the next 1-2 weeks. Immediate support is placed at 9050 levels.

Source : Equity Bulls

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