Technical Observation - May 12, 2020 - Nagaraj Shetti - Technical Analyst, HDFC securities

After showing sell on intraday rise pattern in the last few sessions, Nifty witnessed a smart intraday buy on dips formation today and closed the day slightly lower by 0.46%. The opening downside gap has been filled completely at 9220 levels in today's session. A small positive candle was formed today with lower shadow. Technically, this formation signals buy on intraday dips action in the market.

Today's pattern also signals a false downside breakout attempt of the range movement (9400-9150) of the last few sessions. This market action could signal a possibility of upside bounce in the market in coming sessions. Any upmove from here could continue within sideways range movement of the market.

As long as the key upside resistance of 9450-9500 is protected in the upside bounce, the near term trend of Nifty presumed to be down and the downside pattern target of bearish island reversal could be watched at 8900 levels.

Source : Equity Bulls

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