Nifty makes a Hammer after a spinning top as it continues to be indecisive mode due to dull breadth ahead of festive season.

Nifty as usual couldn’t breach the 8740 mark for fifth consecutive day and ended below 8700 mark making a “hammer pattern”. A hammer pattern is a sign of reversal, specially bullish, if found at lower pat of chart. This is placed at upper band of trading channel which may augur well for bulls if nifty sustains the first hour of next trading session above 8740.

If Nifty cannot breach 8740 than a drag towards 8650 – 8450 can be seen on closing basis. For now immediate support comes at these support levels untill and unless index doesn’t break upward resistance line drawn from 8968.

The sectors to be kept in focus will be Pharmaceuticals and Media while a profit booking can be seen in Auto ancillary,  Bank and Small and midcap. The stock action will be there as we have results lined up.