Nifty closes down 127.45 points at 5967.05 - Indsec Securities & Finance

The Nifty closed the day negative down 127.45 (2.09%) points at 5967.05 from 6094.50 Wednesday, on the back of very good volumes. Major loser in Nifty were Reliance Infra (-10.20%), Ranbaxy (-8.53%) and JP Associates (-8.31%) whereas major gainers were Sun Pharma (+0.41%), HDFC (+0.37%) and Ultra Tech (+0.20%).

The volume in the cash market for both NSE and BSE put together was up 35.00% to Rs. 172.90 bn from Rs. 127.80 bn Wednesday. The advance/decline ratio stood at 0.23:1 from 0.49:1 for stocks traded on NSE.

The Nifty on the hourly chart after forming butterfly pattern has reversed and is forming AB=CD pattern. It is likely to get complete at 5930 levels, where in we expect market to take some breather before continuing its journey downwards.

The RSI(14) after facing resistance at 50 level breached the lower range of bullish band and closed just above the lower range of bearish band. we expect the market to find minor support at this level.

The Nifty on the daily chart is forming simple retracement of swing High/Low 6229/5477 and is likely to take support at 5940 levels. Any further selling pressure can take the market down up to 5764 (61.8%) level of retracement. The RSI(14) closed just below the 50 level and is likely to go down.

Source : Equity Bulls

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