Nifty has formed a 'Doji' candlestick pattern - AXIS Securities

The benchmark index opened marginally higher and traded volatile on either side in a narrow range 55 points. Nifty closed on a flat note at 5995 with 15 points gain.

With post Monday's sharp decline Nifty remained sideways in previous session and has formed a 'Doji' candlestick pattern. This suggests a short term pause to the recent down move as well as indecisiveness amongst the market participants for the immediate trend direction. Nifty has made a lower High-Low formation indicating bearish bias. For the day Doji's High-Low would act as crucial trend decide levels. On the downside if Nifty trades below 5970 then it may drift further in the range of 5940-5910 levels. However a decisive move above previous session high of 5026 would initiate buying which may lead index upside towards 6045-6060 levels. Currently Nifty is sustaining above the multiple support zone of 5965-5960 levels and any decisive close below this would trigger a further downside in the range of 5880 levels.

The daily strength indicator RSI and the momentum indicators Stochastic both have turned bearish from overbought zone along with negative crossover indicating a short term correction in the near term.

The trend deciding level for the day is 5995, If NIFTY trades above this level then we may witness a further rally up to 6025-6055-6080 levels. However, if NIFTY trades below 5995 levels then we may see some profit booking initiating in the market, which may correct up to 5970-5940-5910 levels

Stocks to focus for intraday Long: Sobha, Glenmark, Zeel, Cesc, BOB, Powergrid, Divis Lab, Colpal, Idea

Stocks to focus for intraday Short: Tata Global, Gitanjali, Mcdowell, Bajaj Auto, HCLTECH, Ibrealest, DLF, HDFC Bk

Source : Equity Bulls

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