January 23, 2010

Technical Analysis - Nifty

  • Nifty this week drifted from 5293 to 4955, finally closed to 5036 on Friday
  • Positive aspect is on Friday Nifty bounced back from low of 4955 & closed at 5036 level, which shows "Hammer" - indicates Bullish Reversal.
  • Bullish reversal is only confirmed if next trading day, market should open gap up or show buying pressure or long white candlesticks.

What is Hammer ?

  • The market is in downtrend
  • Small body at the upper end of the trading range
  • Color of this body is not important
  • Long lower shadow at least twice the length of the body
  • Little or no upper shadow

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