Nifty Forms ‘Spin­ning Top’, Shows Mar­ket Lacks Clar­ity

The Economic Times - - Smart -

timesin­ter­ ETMar­ The Nifty50, which re­claimed its cru­cial psy­cho­log­i­cal level of 7950, closed flat in the neg­a­tive ter­ri­tory on Thurs­day, form­ing a ‘Spin­ning Top’ kind of pat­tern on the daily can­dle­stick charts.

The Nifty50 in­dex ended its win­ning streak af­ter pos­i­tive close for six con­sec­u­tive ses­sions. It saw a neg­a­tive clos­ing and formed a ‘Spin­ning Top’ can­dle on the daily chart, which is a neu­tral pat­tern that re­flects in­de­ci­sive­ness on the part of the traders.

In a ‘Spin­ning Top’ for­ma­tion, the can­dle has both long as well as lower shad­ows, but the body is small, which in­di­cates that both the bulls and the bears re­main ac­tive through the ses­sion, but the in­dex ends flat.


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