Selling Pressure leads Nifty to close lower at 5987 - AXISDirect

Nifty opened the session with a bullish gap and remained lackluster in initial half however selling pressure in later half led index to close lower at 5987 with 12 points loss.

On the daily chart Nifty has continued its downward momentum for the sixth consecutive session forming a sizable bear candle. Nifty has accelerated its down move with lower high-Low formation representing short term bearish trend. However with current close Nifty is place at lower end Channel support of 5980 and sustained above the same on closing basis. Nifty witnessed the 130 points fall from the recent Top (6111) Nifty hourly chart indicators have entered in oversold territory maintaining lower Top-Bottom formation. The daily prices are placed below its short term 20 day SMA(6027) which supports bearish trend. For the day if index trades below 5980 then it may drift further in the range of 5940-5920 levels . On the upside intraday resistance is in the range of 6000-6020 levels however a sustainable move above 6020 would cause for a short term pull back rally.

The daily strength indicator RSI and the momentum indicator -Stochastic both are in bearish mode indicating weakening sentiments.

The trend deciding level for the day is 6000, If NIFTY trades above this level then we may witness a further rally up to 6025-6060-6080 levels. However, if NIFTY trades below 6000 levels then we may see some profit booking initiating in the market, which may correct up to 5965-5945-5910 levels.

Stocks to focus for intraday Long: PFC, Bhushan Steel, IFCI, Havells, Dish Tv., HUL, SUN TV

Stocks to focus for intraday Short: KTK Bk., Raymond, Union Bank, Bhel, Unitech, Lupin, ONGC.

Source : Equity Bulls

Keywords