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

After witnessing a sharp upside bounce on Wednesday, Nifty continued with decent follow-through action on Thursday and closed the day higher by 1.38%. A small positive candle was formed today, which has stuck at the hurdle of opening down side gap of 21st April at 9230 levels.

The pattern of higher highs and lows continued as per daily time frame chart and Nifty is on the way towards new higher high around 9390 levels (on Thursday, gone up to 9352). Hence, there is a possibility of profit booking at the new swing highs of around 9400-9450 in the short term.

Nifty continued to move in a rising wedge type formation. Recently, it bounced up from a lower end of this formation at 8900 levels and Nifty is now heading towards the upper end of the wedge at 9450-9500 levels. Hence, this area could act as a strong resistance in the near term.

The short term trend of Nifty continues to be positive, one may expect further upside in the next session. The upside area of 8400-8450 could be a strong resistance and there is a possibility of profit booking from the highs. Immediate support is placed at 9240.

Source : Equity Bulls

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