Tech View: Nifty starts forming higher bottom. What traders should do on Wednesday

A trend reversal was witnessed in Nifty on Tuesday which ended about 177 points higher to form a bullish inverted head and shoulder pattern on the daily chart.

The positive chart pattern like higher tops and bottoms has started to form and Monday’s swing low of 19,480 levels could now be considered as a new higher bottom of the sequence. A decisive move above 19,700 levels is likely to bring a sharp up move for the market towards 19,950-20,050 levels for the short term. Immediate support is placed at 19,550 levels, said Nagaraj Shetti of HDFC Securities.