Nifty down 103.85 points - Indsec Securities & Finance

The Nifty closed the day negative down 103.85 (1.79%) points at 5693.05 from 5796.90 Wednesday, on back of very good volume. The rollover in Nifty Index was 54.00% and stocks at 66.00% way below previous expiry. Major loser in Nifty were Reliance Infra (-9.28%), SBIN (-5.99%) and PNB (-5.53%) whereas major gainers were TCS (+2.28%), Kotak Bank (+0.93%) and HCL Tech (+0.50%).

The volume in the cash market for both NSE and BSE put together was up 83.00% to Rs. 254.50 bn from Rs. 139.10 bn Wednesday. The advance/decline ratio stood at 0.32:1 from 1.24:1 for stocks traded on NSE.

As per the chart formation on the monthly chart one can see support coming in at 27.2% retracement level of swing HIGH/LOW of 6338/2252 coinciding with the up moving trend line. We expect the market to test those levels going forward since there are number of minor supports coming in from swing HIGH/LOW 6338/4530 (AB=CD) extension levels from weekly chart at 5620, 5420 and 5210.

The Nifty on the hourly chart opened positive on account of global cues but could not sustained at higher levels. It came down post announcement of Union Budget and VWAP selling took it further down today-s low. The Nifty it seems has completed AB=CD pattern when it touched low of 5671.90 and close above it. The RSI(14) on the hourly chart touched the lower range of bearish band and closed just above it.

Nifty on the daily chart tested 78.6% level of swing high/low 6111/5548 retracements. As per daily chart retracements the market is likely find support at 5668 and 5610 levels. The RSI(14) on the daily chart closed just above the lower range of bearish band, thereby indicating minor bounce back from this levels.

Source : Equity Bulls

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