Technical Observation - April 29, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After witnessing a smart upside recovery from the lows, Nifty showed a sustainable upmove on Wednesday and closed the day higher by 1.8%. A long bull candle was formed on Wednesday, after the range bound movement of the last few sessions.

A new swing high was formed on Wednesday at 9599 and this action coincides with present positive sequence of higher highs and lows on the daily chart. As per this pattern, Nifty is placed at the higher high formation. But, still there is no indication of any reversal at the highs.

The rising wedge pattern is intact and Nifty is now placed near the upper end of the wedge around 9600 levels. Normally, a formation of such rising wedge after a sharp down trend like March 2020, needs to be viewed carefully, with regards to long positions.

The short term trend of Nifty continues to be positive. A sustainable move only above 9600 could open up a sharp upmove towards 9900-10000 levels in the next one week. Immediate support is placed at 9450.

Source : Equity Bulls

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