Nifty slips 73 points during last week to close at 5872 - AXIS Direct

The benchmark indices opened the previous week on a flat note and traded with extreme volatility on either side within broad range. On weekly basis Nifty slipped 73 points or 1.23% at close of 5872.

The benchmark index marked a week's high (5971) at around the mentioned multiple supply zone of 5970 levels and witnessed a sharp correction in first half of the week. However Nifty witnessed strong buying support coupled with short covering around 61.8% Fibonacci retracement support (5778) of the recent upmove (5663-5971) which recouped all the earlier losses. Nifty on the weekly chart has formed a small bear candle with long lower shadow indicating support at lower levels however it has failed to cross the multiple resistance zone of 5970. A decisive close above 5970 would open fresh upside in the range of 6000-6080 levels. On the downside if Nifty trades below 5850-5840 levels then it may drift further in the range of 5700-5660 levels. The daily prices are placed above 20 and 100 day SMA(5845,5860 ) which supports bullish trend. For the week we expect index to remain volatile with mixed bias as ahead of RBI policy. During the week index is likely trade within broad range of 5970-5770 levels.

The daily strength indicator RSI is quoting at 49 sustaining above its reference line which indicates positive bias. However on the weekly chart RSI is slanting downward which signals weak bias.

The trend deciding level for the day is 5895, If NIFTY trades above this level then we may witness a further rally up to 5925-5975-6010 levels. However, if NIFTY trades below 5895 levels then we may see some profit booking initiating in the market, which may correct up to 5840-5810-5755 levels.

Stocks to focus for intraday Long: Dabur, Kotak Bk, Lupin, M&M, Punjlloyd, Siemens

Stocks to focus for intraday Short: Abirlanuvo, DLF, Divis Lab., Gail, NTPC, Ibrealest, ICICI, Idea, Raymond, Sail

Source : Equity Bulls

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