Can this 'Hammer' stall the fall? ? ?

Dear Friends

The Nifty's today's move was quite interesting. After crashing almost 11%+ the market reversed direction (could have been anticipated on the intraday chart) and closed near it's previous close - giving what the japanese call a'hammer'

Usually this pattern is suggestive of exhaustion of the current trend ( which is down) and one can expect to see some buying momentum at least for the short term.



Technically a break above Nifty 2605 now can lead to a rally near the 2800 and 3000 Nifty zone. Use price fall now to add to your positions.

And yes - don't forget that 'hammers' and 'inverted hammers' have been successful in reversing trends in the past !

Happy trading !

CA Rajiv D Khatlawala