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

The S&P CNX Nifty closed the day negative down 30.20 (0.50%) points at 5971.50 from 6001.70 Tuesday, on back of good volume. The Put/Call ratio based on Open Interest for this month expiry has come down to 1.17 from 1.28 as profit taking was witnessed. Major loser in S&P CNX Nifty were BHEL (-2.87%), Ultratech Cements (-2.81%) and Tata Steel (2.55%) whereas major gainers were Suzlon (+7.05%), Tata Motors (+4.20%) and GAIL (+1.66%).

The volume in the cash market for both NSE and BSE put together was up 11.00% to Rs. 160.90 bn from Rs. 144.80 bn Tuesday. The advance/decline ratio stood at 0.66:1 from 0.81:1 for stocks traded on NSE.

The S&P CNX Nifty on the hourly chart after completing the Butterfly sell pattern is forming a simple AB=CD pattern with the target of 5800. We expect the market to take support at 5954 – 5930 – 5900. The RSI(14) on hourly chart faced resistance the the upper range of bearish band and came down to the lower range of bullish band at the closing. We expect it to face resistance at 50 levels going forward.

The S&P CNX Nifty on daily chart continued to form AB=CD pattern. The stochastic has confirmed the sell signal and is reversing.

Source : Equity Bulls

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