Five large, mid-cap stocks that formed ‘inverted hammer’ with bullish reversal signal

resr 5paisa Research Team

Last Updated: 12th December 2022 - 05:31 pm

Listen icon

The Indian stock market has been trying to find a bottom around 15% below the peak. On the one hand, the spectre of interest rate hikes by the US Fed and the RBI is playing out in the mind of investors. On the other, the high price of oil due to the Russia-Ukraine war has meant companies at large face cost pressures.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the pick or is showing signals of past activity that is best left untouched.

One such parameter is the ‘Inverted Hammer’ price pattern in candlestick charts. This happens when bullish traders start to wrest control, with the stock trading higher but closing near its open, therefore looking like an inverted hammer.

Inverted hammer candlesticks can be seen as a potential signal for upward price reversal.

If we look at the Nifty 500 pack, we get a list of five stocks that are showing a hammer pattern after the market mayhem this month.

Among these, the large cap group with a market valuation upwards of Rs 20,000 crore has just two names: industrials company Thermax and auto component major Minda Industries.

In the mid-cap space with value in the Rs 5,000-20,000 crore range, there are three stocks: PNB Housing Finance, The New India Assurance Company and Brightcom Group.

But the small and micro-cap space has several names that fit the price pattern.

Among these, stocks with market value upwards of Rs 200 crore are Century Enka, Shanti Educational, Music Broadcast, Vikas Lifecare, Waaree Renewable, White Organic Retail, Swelect Energy, and HCP Plastene.

Other stocks in this list are Wim Plast, Mangalam Global, GSS Infotech, Zim Laboratories, Sika Interplant, Knowledge Marine, Wealth First, Inspirisys Solutions, Mangal Credit and ANG Lifesciences.

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?