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Nifty 50 forms hammer pattern after steep September drop
The index fell 6.6% in September to 22,716.20 at close, after a gap down and an intraday low of 22,569.65.
LiveMint Markets said the Nifty 50 saw one of its sharpest declines in the September series, dropping 1,618 points or 6.6%. The index reopened at a low of 22,569.65 after a gap down, then recovered more than 140 points from the day’s low.
According to LiveMint Markets, the Nifty closed at 22,716.20, down 64.05 points or 0.28%, after trading within the opening hour’s range for most of the rest of the session.
LiveMint Markets pointed to a hammer-like candlestick pattern on Tuesday, with a long lower shadow and a small real body near the upper end of the trading range, a move that typically suggests buyers emerged after early selling.
The outlet added that a hammer after a prolonged decline can hint at a short-term reversal, but confirmation in the next session remains important before treating the signal as reliable.