Hot Stocks | Bharti Airtel look attractve on technical charts; Voltas, L&T flash weakness

After witnessing a sharp rally in the month of April, benchmark index Nifty formed a 'Bearish Island' reversal pattern in the first week of May 2020.

The recent rally was capped around a 50-day exponential moving average on a daily interval at 9,700 levels.

On May 6, 2020, initially, it was a guessing hour for the traders as the benchmark index swung both ways.

Later, Nifty continued holding its bullish bias and closed the index a percent higher.

Nifty once again respecting its 21-day exponential moving average and closed above the said average.

Geopolitical tensions between China and the USA and low April manufacturing PMI data created bearish sentiments among traders, which also increases volatility.

When we compare the current fall in the benchmark index with 2008 fall on the monthly chart, we can observe that first retracement after the fall was almost 50 percent in 2008 and then Nifty traded sideways in a narrow range for almost 4 months.