Nifty stochastic showing signs of topping up - Indsec Securities & Finance

S&P CNX NIFTY 6009.50 (Up 16.25 Points)

The S&P CNX Nifty closed the day positive up 16.25 (0.27%) points at 6009.50 from 5993.25 Wednesday, on back of good volume. The Put/Call ratio based on Open Interest for this month expiry has gone up to 1.23 from 1.19 with low volumes thereby indicating short covering. Major loser in S&P CNX Nifty were Suzlon (-1.88%), Tata Power (-1.65%) and Lupin (0.98%) whereas major gainers were Dr Reddy's (+2.36%), Cairn (+2.34%) and Bharti (+2.16%).

The volume in the cash market for both NSE and BSE put together was up 5.10% to Rs. 151.30 bn from Rs. 143.90 bn Wednesday. The advance/decline ratio stood at 1.55:1 from 1.72:1 for stocks traded on NSE.

The S&P CNX Nifty on the hourly chart has completed Butterfly sell pattern, any further consolidation at the current levels can take up the market further up to 6055. The RSI(14) on hourly chart touched the upper range of bullish band and came down on account of profit taking at higher levels.

The S&P CNX Nifty on daily chart continued to form AB=CD pattern. The stochastic is showing signs of topping up and can act as resistance going forward.

Source : Equity Bulls

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