Nifty closes flat - Religare

After opening in positive territory, index resumed overall declining bias as the day progressed and closed flat in the end. Though it hardly changed on broader base stock specific bias remained on the downside side resultant negative market breadth.

On sectorial front; PSU, Healthcare, Power and Oil&Gas were the major draggers; down by more than one percent each. As per Fibonacci retracement placed on intraday chart, the next support is 5975-5945 levels i.e. 50% and 61.8% zone respectively.

Technically, the negative divergence between the price chart of index and RSI oscillator has gradually led to the change in the direction of the prevailing trend so one should now opt for offloading short term buy trades and maintain strict stop while initiating fresh shorts in stocks.

Source : Equity Bulls

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