Technical View: Nifty forms bullish Piercing Line pattern, 15,000 can confirm continuation of uptrend.

The Nifty50 gained strength in the afternoon and closed higher for the first time after five sessions on March 19, forming a bullish candle that resembled a Piercing Line pattern on the daily charts. FMCG, IT, metals, pharma and select banking and financials lent support to the index.

The piercing pattern is a bullish trend reversal or bottom reversal pattern that appears towards the end of a downtrend. It opened with a gap down and went on to close above the midpoint of the preceding session. It is an early sign that the bulls are in charge and decline is being bought.

The Nifty opened lower at 14,471.15 and hit an intraday low of 14,350.10 amid volatility but the index gained strength in the afternoon trade and extended rally to hit the day's high of 14,788.25. It closed 186.10 points or 1.28 percent higher at 14,744, after losing 4 percent in the previous five sessions.

The Nifty50 fell 1.9 percent during the week and formed a bearish candle that resembled a hammer formation on the weekly scale.

The hammer is a bullish reversal pattern formed after a decline. A hammer consists of no upper shadow, a small body, and a long lower shadow. The long lower shadow signifies the stock tested its support, where demand was located and then bounced back.