Expect market to take support at 5970–5954–5930–5900 - Indsec Securities & Finance

The S&P CNX Nifty closed the day negative down 27.75 (0.46%) points at 5988.40 from 6016.15 Friday, on back of flat volume. The Put/Call ratio based on Open Interest for this month expiry has come down to 1.23 from 1.29 on low volumes. Major loser in S&P CNX Nifty were L&T (-2.45%), JP Associates (-2.18%) and HDFC (-1.76%) whereas major gainers were BPCL (+3.07%), Maruti (+2.53%) and Cipla (+1.97%).

The volume in the cash market for both NSE and BSE put together was down 1.45% to Rs. 149.40 bn from Rs. 151.60 bn Friday. The advance/decline ratio stood at 1.21:1 from 1.02:1 for stocks traded on NSE.

The S&P CNX Nifty on the hourly chart has completed Butterfly sell pattern, and has started to move downwards. We expect the market to take support at 5970 – 5954 – 5930 – 5900. The RSI(14) on hourly chart has come down from upper range of bullish band 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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