Nifty closes down on profit booking - AXIS Direct

The benchmark indices opened on a flat note and remained lackluster in initial half however profit booking at higher levels led index to close around the day's low. Nifty closed at 5932 with marginal 13 points loss.

After five sessions strong up move Nifty has witnessed some profit booking near mentioned resistance zone of 5970-5990 levels. Nifty on the daily chart has formed a small bear candle with long upper shadow which resembles a bearish 'Shooting Star' - a short term reversal pattern. However a followup close below 5930 would confirm the pattern. For the day if Nifty trades below 5930 then it may drift further downwards in the range of 5880-5870 levels. On the upside immediate intraday resistances are placed at 5950-5970 levels. However a decisive close above 5970 level would open a fresh upside rally towards 6000-6020 levels. The hourly chart indicators are turned negative from overbought zone which signals a possible intraday correction.

The daily strength indicator RSI has turned flat which signals a reduced strength. The daily Stochastic momentum indicator has also flat in overbought zone which indicates a slowdown in upside momentum.

The trend deciding level for the day is 5945, If NIFTY trades above this level then we may witness a further rally up to 5960-5985-6000 levels. However, if NIFTY trades below 5945 levels then we may see some profit booking initiating in the market, which may correct up to 5920-5900-5875 levels.

Stocks to focus for intraday Long: Mcdowell, Syndicate Bk, Petronet Lng., Yes Bk, Idea M&M

Stocks to focus for intraday Short: Adani Port, Titan, Dish Tv, STAR, FinTech, TCS, Maruti

Source : Equity Bulls

Keywords