Nifty Chart Analysis 17, April 2020

Nifty has recovered from the lows of 7511 which we had seen on 23rd March, 2020 to 9291 as of 17th April, 2020. We have seen a good recovery of 1780 points. If we take a closer look at the candle stick pattern , we would be able to identify " Hanging man" formation . Noteworthy is Hangseng which opened around 2% gap up has not been able to sustain the levels and ended lower to its opening price of 24,457.83. 

Hanging man typically after a 6-14 candle pattern in the upward direction indicates the exhaustion setting in the markets. Most importantly we had opened gap up today and failed to sustain those levels. It also is a precursor to the formation of  an Evening Star . If  on 20th April, we open gap down, the Evening Star formation would be completed. 

With the Covid pandemic far from being over, the risk reward now favours shorts .

Candle stick time frame : 1 day- Nifty Spot 

Note: Always trade with Stop Loss