Technical Observation - May 18, 2020 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today's market performance.

After showing range bound movement in the last few sessions, Nifty witnessed sharp weakness today and closed the day lower by 313 points. A long bear candle was formed, which indicates downside breakout of the range movement (9050-9450).

The downside pattern target of previous bearish island reversal pattern of 4th May has been reached today at 8911 and Nifty closed below it. After showing minor higher highs and higher lows pattern on the daily chart in the last month, Nifty is currently showing negative sequential movement like lower highs and lows in the last couple of weeks. This is negative indication and any attempt of intra-week rise is expected to find selling pressure at the highs.

The short term trend of Nifty is negative, any attempt of upside bounce could find resistance around 8950-9000. Next downside levels to be watched at 8500 in the next one week.

Source : Equity Bulls

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