According to reports from ET Now, technical analysts suggest that the 'Morning Doji Star' formation on the daily charts has signalled a potential short-term trend reversal, placing the Nifty 50 at a critical crossroads for Friday's trading session. However, recent technical analysis indicates that the Doji pattern itself is emerging as a significant warning sign - as noted by financewithshaxhxnk, this candle formation appears almost invisible with no body, consisting only of a single line, but represents the market's biggest warning sign. The Morning Doji Star pattern is a bullish reversal signal that occurs when a bearish candle opens with a long lower shadow and closes near the top of the range, typically indicating a shift in market sentiment from selling to buying pressure. This contrasts with the Doji pattern, which represents indecision in the market and often precedes significant reversals.
As reported by ET Now, the 50-share NSE Nifty climbed 277 points, or 1.18 per cent, to finish at 23,689.60 amid buying in pharmaceuticals, healthcare, metal and banking stocks. The Sensex closed at 75,398.72, rising 789.74 points or 1.06 per cent. According to Sachin Gupta from Choice Broking, the index opened with a strong gap-up of 117.65 points at 23,530.25, reflecting positive sentiment, but witnessed some selling pressure in the initial few minutes before recovering sharply. The immediate support is placed in the 23,450–23,500 zone, while resistance is seen in the 23,900–23,950 range.
According to ET Now reports, Nifty Pharma was the top gainer, rising 2.74 per cent, followed by the Nifty Healthcare Index, which advanced 2.56 per cent. The Nifty Metal index also climbed 2.04 per cent while the Nifty Auto index rose 0.71 per cent. Banking counters also moved higher, with the Nifty PSU Bank index rising 1.37 per cent and the Nifty Private Bank index gaining 1.16 per cent. However, the IT index declined by 2 per cent amid selling pressure in technology stocks, with key counters including HCL Tech, Infosys, TCS and Tech Mahindra witnessing losses during the session. Recent trading sessions have shown continued strength in pharmaceutical and banking sectors, with Adani Enterprises surging 8.60% and Cipla advancing 8.22% in previous sessions.
As reported by ET Now, Nagaraj Shetti from HDFC Securities noted that Nifty is now placed at the crucial hurdle of 23,800 (previous swing lows as per the concept of change in polarity). He added that a sustainable move above this hurdle could open more upside towards 24,500 levels in the near term, with immediate supports to be watched around 23,500 levels. The Relative Strength Index (RSI) stands at 45.86, indicating improving momentum though it still remains below the stronger bullish zone. The volatility index, India VIX, declined by 4.18% to 18.61, indicating easing volatility and improving market confidence. In the derivatives segment, notable call writing was observed at the 23,800 and 23,700 strikes, while put writing was concentrated at the 23,500 and 23,600 strikes.
According to ET Now reports, crude oil prices continued to remain elevated amid ongoing geopolitical concerns, with Brent crude trading at USD 105 per barrel. In the commodity market, gold prices for 24 karat reached ₹1,62,250 per 10 grams on Thursday, while silver prices declined by 1 per cent to ₹2,97,002 per kilogram. The recovery session was supported by broad-based buying across key sectors, with both Nifty and Bank Nifty forming bullish reversal candlestick formations on the daily timeframe, indicating improving sentiment at lower levels.
