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Stock Market Highlights: Nifty forms a hammer candle on daily scale. How to trade on Tuesday?
US President Donald Trump waging a tariff war on Canada, Mexico and China sent a chill into global markets as major European and Asian indices including India’s headline indices reeled under selling pressure on Monday. Bank’s energy and FMCG stocks fell most even as the IT sector tried to salvage some pride. Meanwhile, Saturday’s budget announcements or rather lack of them for capex intensive sectors, soured the D-Street sentiments as well. While the 30-stock S&P BSE Sensex finished flat at 77,186.74, declining by 319.22 points or 0.41%, the broader Nifty fell by 31.75 points or 0.52% to close at 23,361.05.
Commenting on the day’s action, Dr. Praveen Dwarakanath, Vice President of Hedged.in highlighted Nifty exhibiting strength taking support from the middle of the Bollinger band after a sudden fall during the day. “The momentum indicators on the hourly chart, after a drop of below 50 levels, show a rise, also indicating positive sentiments in the index. The index formed a candle with a bullish closing, indicating the momentum to continue towards the next resistance at 23,800 levels. Options writer’s data for the weekly expiry showed increased writing of puts at the 23,300 and below levels and increased writing of calls at the 23,500 and above levels, indicating a range bound index,” Dwarakanath.
Stock Market Highlights: Nifty forms a hammer candle on daily scale. How to trade on Tuesday?
The Nifty index showed resilience on Monday as it formed a hammer candle on the daily scale, indicating a potential reversal in the near future. This bullish candlestick pattern suggests that the market may have found a support level and could potentially move higher in the upcoming sessions.
Traders can look for buying opportunities on Tuesday, keeping a stop loss below the low of the hammer candle. If the Nifty index breaks above the high of the hammer candle, it could signal a bullish trend continuation. On the other hand, if the index fails to sustain above the high of the hammer candle, traders should be cautious and consider booking profits or tightening stop-loss levels.
Overall, the market sentiment remains positive, and traders should look for opportunities to go long on quality stocks with strong fundamentals. It is essential to stay updated with the latest news and market developments to make informed trading decisions. Happy trading!
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stock market highlights, nifty, hammer candle, daily scale, trading tips, tuesday trading, stock market analysis, stock market trends, market insights
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