Technical Observation - April 30, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

Nifty witnessed a sharp follow-through upside bounce on Thursday and closed the day on a hefty gains of 3.21%. A long bull candle was formed on Thursday on the day of F&O expiry of April series and closed near the highs.

A long bull candle was formed with western gap up opening. The said opening upside gap remains unfilled. Technically, this pattern indicates an upside breakout of rising wedge or an up sloping triangle type pattern around 9600 levels. This is positive indication. Today's gap around 9600 could be a crucial base to continue with further upside momentum.

Nifty formed a long range bull candle on weekly chart, after showing sluggish movement on upside in the last couple of weeks. This pattern indicates a strong comeback of bulls in the market.

The near term trend of Nifty is firmly positive. A decisive upside breakout of narrow range movement could indicate more upside for Nifty in coming weeks, before showing any downward correction from the highs. Strong overhead resistance to be watched around 10,000-10,100 in the next one week.

Source : Equity Bulls

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