Nifty closes at 5698.50 - Indsec Securities & Finance

The Nifty closed the day negative down 21.20 (0.37%) points at 5698.50 from 5719.70 Friday, on back of low volume. Major loser in Nifty were JP Associates (5.61%), Hindalco (-4.65%) and Jindal Steel & Power (-4.43%) whereas major gainers were Bharti (+1.59%), Dr Reddy's (+1.33%) and HDFC Bank (+0.83%).

The volume in the cash market for both NSE and BSE put together was down 14.00% to Rs. 121.30 bn from Rs. 140.50 bn Friday. The advance/decline ratio stood at 0.35:1 from 0.88:1 for stocks traded on NSE.

The Nifty on the hourly chart opened positive on account of global cues and came down on account of selling pressure across sectors. The Nifty on the hourly chart is forming positive divergence along with Stochastic (9,5,5) and is likely to give minor bounce upto 5740 – 5750 in the coming days. The RSI(14) on the hourly chart has also formed positive divergence thereby confirming a bounce.

Nifty on the daily chart after testing 78.6% level of swing high/low 6111/5548 retracements faced resistance at 70.7% retracement level. 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.

Source : Equity Bulls

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