DSIJ Mindshare

Considering the daily chart, the stock has given a 40-day consolidation breakout. This breakout was supported by a robust volume of more than five times of 50-day average volume, indicating strong buying interest by the market participants.

This is an extremely rare pattern and usually occurs at the top of an uptrend. Generally, we rely on the typical momentum indicators or oscillators for recognising an overbought and oversold condition of the stock. However, this Japanese candlestick pattern gives us a unique way to recognise the time when the momentum is about to wane out. 

On Tuesday, Nifty Media index gained over 14 per cent and also surged above its prior swing high, which was registered in the month of June. The stock of Network 18 Media & Investments has gained nearly 7 per cent. The stock has also given a 60-day consolidation breakout.

The benchmark index Nifty has formed a dragonfly Doji candle on the daily chart. The long lower shadow of the candle is indicating that all the dips are being bought. Let’s have a look at some technical charts for the short term.

The broader markets were seen outperforming the frontline gauge with Nifty Midcap 100 and Nifty Smallcap 100 soaring over 0.45 per cent & 0.54 per cent, respectively. The advance-decline ratio was marginally in favour of advancers.