Investors are advised to remain cautious and await for a breakout or a breakdown before initiating fresh positions.
Nifty which started with a gap down recouped most of its intraday losses and closed above its crucial level of 10,800 for the fourth straight day in a row on Friday. It formed a Hammer like candle on the daily candlestick charts.
The index formed a Hammer like pattern for the second consecutive day in a row which indicates that the decline was bought into. The index bounced near its 13-EMA to close above its 5-EMA placed 10,808.Hammer which is a bullish reversal pattern is formed after a decline while a Hanging Man is a bearish reversal pattern. A Hammer consists of no upper shadow, a small body, and long lower shadow.long lower shadow of the Hammer signifies that it tested its support where demand was located and then bounced back. The index bounced back near its crucial support placed around 10,754.65.