Nifty closes on strong note with 1.50% gains - AXIS DIRECTNifty closes on strong note with 1.50% gains - AXIS DIRECT

The benchmark indices opened with a bullish gap and gained the upside momentum from the opening trade and continued the upside rally throughout the session. The broad based buying across all the sectors led Nifty to close on a strong note at 5784 with 1.50 % gains.

Nifty on the daily chart has formed a strong sizable bull candle ending at the highest points of trading range. Nifty has decisively closed above its past two session's high which signals a bullish bias and short term reversal in the near term. This buying was observed around the crucial 200 day EMA support of 5650 level which would act as immediate support. For the day if Nifty sustains above 5790 then it may test upside resistance zone of 5820-5850 levels. On the upside index may face a resistance at 5845 which is 100 day SMA. On the downside if Nifty trades below 5770 then it may drift in the range of 5740-5725 levels which would remains a short term buying opportunity.

The daily strength indicator RSI and the momentum indicator - Stochastic are placed bullish along with positive crossover which signals a positive momentum in the near term.

The trend deciding level for the day is 5765, If NIFTY trades above this level then we may witness a further rally up to 5810-5835-5875 levels. However, if NIFTY trades below 5765 levels then we may see some profit booking initiating in the market, which may correct up to 5740-5695-5675 levels.

Stocks to focus for intraday Long: ApolloTyre, Bata Ind., Bhartiartl, Gail, Hindalco, IGL, Maruti

Stocks to focus for intraday Short: Glenmark, IDEA

Source : Equity Bulls

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