Trend deciding level for Nifty for the day is 5875 - AXIS Direct

The benchmark indices opened the session on a flat note and witnessed a sharp fall in initial hour which hit the day low at 5791. However a strong buying coupled with short covering led index to close in green. Nifty closed above 5900 level at 5908 with 57 points gains.

Nifty on the daily chart has formed a strong bull candle with long lower shadow indicating buying at lower levels. Nifty has formed an 'Engulfing Bullish' candle on high volumes which indicates positive bias. In previous session Nifty has witnessed buying around 61.80% Fibonacci retracement support at 5778 of the recent upmove (5663-5971) which is now remains a crucial support . For the day if Nifty sustains above 5920 level then may scale further in the range of 5945 and 5970 levels. At higher level Nifty is facing an multiple resistance zone around 5970-5990 levels and a decisive close above this would trigger a fresh upside rally. On the downside 5880 and 5850 would remains as an intraday support. As the short term trend remains bullish any small corrections would remains as a buying opportunity. At current close Nifty is sustaining above its short term 20-day SMA(5846) and medium term 100-day SMA(5859) which supports bullish bias ahead.

The daily strength indicator RSI gained the strength at 50 levels and poised upward showing strength ahead.

The trend deciding level for the day is 5875, If NIFTY trades above this level then we may witness a further rally up to 5955-6000-6080 levels. However, if NIFTY trades below 5875 levels then we may see some profit booking initiating in the market, which may correct up to 5825-5745-5700 levels.

Stocks to focus for intraday Long: RCOM, Sun Tv., Ktk Bk, Maruti, SBIN, Lic Hou.Fin., Dena Bk, Reliance, HCLTECH

Stocks to focus for intraday Short: Mcleodruss, Bajaj Auto, Raymond, Tata Chem, Sunpharma

Source : Equity Bulls

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