Technical Observation - April 27, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After witnessing a sharp weakness on Friday, Nifty bounced up smartly on Monday amidst a range bound action, closed the day higher by 127 points. A small positive candle was formed on Monday with gap up opening and upper shadow. The opening upside gap remains unfilled. This candle pattern signals an upside bounce from a support of 9150, but struggling to sustain the highs.

On the upper side 9350-9390 levels continues to act as a key overhead resistance for the short term. A sustainable move above 9400 levels could be considered as an upside breakout attempt of the present range movement.

The rising wedge pattern in Nifty as per daily timeframe is still intact and Nifty is currently facing resistance near the upper area of this wedge at 9400-9500.

The short term trend of Nifty is positive amidst a range movement.The upper area of 9400 could offer strong resistance on any upmove from here. Immediate support is placed at 9150 for the next session.

Source : Equity Bulls

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