ANALYSING THE IMPACT OF COVID-19 ON THE EFFECTIVENESS OF CANDLESTICK PATTERNS IN THE NIFTY FMCG INDEX

Abstract

This study investigates the effectiveness of selected candlestick patterns (Hammer, Inverted Hammer, Engulfing, Harami, and Morning Star) in predicting market trends before and after the COVID-19 pandemic. Using daily stock data from the Nifty FMCG index, the research compares the frequency and success rates of these patterns across two periods: pre-COVID-19 (April 2016 to March 2020) and post-COVID-19 (April 2020 to March 2024). The findings reveal notable shifts in pattern occurrences and a slight decline in success rates post-COVID-19, with the Harami pattern remaining the most reliable. This analysis provides insights into market behaviour changes and guides investors in optimizing trading strategies in the post-pandemic environment.