(Image Credits- Moneycontrol)



Nifty has formed a Hammer on weekly charts consecutively which again shows indecision among the Bulls and Bears! Though in the process of the formation of a hammer Nifty Fut has created a Triple Top at 9982 which is a sign of danger for the bulls. All lagging indicators/oscillators like RSI, Stochastics, MACD are at DIVERGENCE which is again a danger sign for bulls as divergence in indicators are a clear sign of a 8-10% correction in near term. A new trend will be established this week if Nifty breaks 9980 on the upper side or 9880 on the down side on closing basis which could show a 200-250 point move either side. The pick-up in volumes in Nifty in the past 2 week have given an early indication that a breakout or breakdown will happen in the coming week.

CREALTH Technical Funda

Hammer – A hammer is a candlestick chart pattern that occurs when a security trades significantly lower than its opening, but closes either above or near its opening price. This pattern forms a hammer-shaped candlestick, in which the body is at least half the size of the tail or wick. The pattern has different names/significance in different time frames :-
Made at a downtrend – Reversal Pattern which states that the security can bottom out at the current price. It means that the stock can rise significantly from current levels.
Made at a uptrend (Hanging Man) – A Hammer is called a Hanging Man when it is made in a uptrend. It states a Reversal/Indecision Pattern which states that the security may fall or move sideways for the next few days. It means either the stock will fall or move in a certain range for the next few days.
Made at the middle of a trend – Breakout/Breakdown Pattern which states that the security may either give a big rise or big fall in the next few days.



About Yash Dugar

Yash Dugar
Yash is a passionate entrepreneur who is the Founder of Investment Research firm named CREALTH RESEARCH! Being a NISM Certified Investment Advisor he has done GFMP course from BSE Institute and a CFP in making. He has also been the curator of TEDxBESC & is a die heart social worker actively working with two NGO's namely Yahvi & Tiljala Shed. Can be reached at [email protected]

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