Nifty closes below 5700 mark - AXIS Direct

The benchmark indices opened the session on a positive note in line with positive global cues however selling pressure from initial tick pulled index lower throughout the session. Nifty closed the session below 5700 mark with huge loss of 103 points or 1.80%.

Index extended its losses for the fifth consecutive week losing almost 440 points from the recent Top of 6111. Nifty closed to fresh three months low. Nifty on the daily chart has formed a large bear candle with day's 180 points trading range. Nifty marked a day low around (5671) 200-day EMA of 5649 levels which remains an immediate support. For the day a sustainable move below 5700 would continue its downward momentum and may test 5650-5600 levels. On the downside major support is placed at 200-day SMA at 5546 level which is also near by the bullish gap area (5526-5447) formed on 14th Sept. Nifty is trending lower across all the time frames as index falling within lower Top and Bottom formation. All the short terms (20 & 50 day SMA) as well as medium term (100 day SMA) are sloping downward supports bearish trend.

The daily strength indicator RSI is in bearish mode sustaining below its reference line indicating weakness. However the momentum indicator - Stochastic has turned bullish from oversold zone along with positive crossover which signals a possible pullback action.

The trend deciding level for the day is 5740, If NIFTY trades above this level then we may witness a further rally up to 5805-5915-5980 levels. However, if NIFTY trades below 5740 levels then we may see some profit booking initiating in the market, which may correct up to 5625-5560-5450 levels.

Stocks to focus for intraday Long: Jindalsaw, Titan, MRPL TCS

Stocks to focus for intraday Short: KTK Bk.,Unitech, REC , SUNTV, IndusInd Bk, Grasim, Lupin

Source : Equity Bulls

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