Technical Observation - May 26, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing range movement on Friday, Nifty continued to show lackluster type movement today and closed the day on a slightly negative note. A small negative candle was formed that placed beside the similar type of candle of Friday's session. This action indicates a range movement in the last three sessions, after a sharp upside bounce of 20th May.

Currently, Nifty is placed at the key overhead resistance of 9150-9180 levels in the last few sessions and we observe an emergence of intraday weakness from near the resistance. On the daily chart we notice a formation of consistent lower highs within a larger range bound movement. Currently, Nifty making an attempt to form another lower high formation above 9150 levels.

The formation of hammer type candle pattern on the weekly chart signal that any minor weakness from here could be a buying opportunity in the short term. Immediate supports to be watched at 8950. A sustainable move above 9150-9180 is likely to lift Nifty towards 9500 levels in the short span of time.

Source : Equity Bulls

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