Half Hourly Chart
- Nifty closed down, below the trendline joining lows from 3918.
- This was the sixth consecutive week of fall, maximum duration among corrections since March lows.
- Oscillators are weak and have moved below their lows made in Feb 2010.Stochastic has reached oversold zone.
- Volumes for the week was high and breadth very poor.
- Hammer formed at crucial support of 4844.
- The bounce was from the trend line joining lows made during the fall from 5400.
- Close above 200dema though intraday panic broke the support.
- Positive divergence in Rsi 14 intact.Stochastic has reached oversold zone.
- Volumes were good and breadth was poor.
- AD line has fallen to it's lowest level since September 2009.
Half Hourly Charts
- Oscillators moving up after showing positive divergence.
- Maintained close within the falling channel.
The Nifty is in a downtrend for the sixth consecutive week. Oscillators have started showing positive divergence . Stochastics on the weekly and daily charts have reached oversold zone. The daily charts show a hammer formed at good support. The Bullish Hammer Pattern is a significant candlestick that occurs at the bottom of a trend or during a downtrend and it is called a hammer since it is hammering out a bottom.The hammer has been formed after violating the 200 dema intra day and recovering sharply from the lows of 4842.
The above indications point at the probability of a short term bottom having been formed at 4842. Hammer patterns need confirmation with a bullish candle the next trading day.Watch out for a bullish day on Monday.
Happy Trading !!