Nifty closes up 0.20% - Indsec Securities & Finance

The Nifty closed the day positive up 11.75 (0.20%) points at 5667.65 from 5655.90 Thursday, on the back of good volumes. The rollover in Nifty index and stocks futures was 13.43% and 14.81% respectively to next expiry. Major loser in Nifty were Jindal Steel & Power (-7.88%), Bank of Baroda (-4.76%) and Hindalco (-3.84%) whereas major gainers were Indusind Bank (+3.35%), ONGC (+2.77%) and Dr Reddy's (+2.11%).

The volume in the cash market for both NSE and BSE put together was up 9.00% to Rs. 140.95 bn from Rs. 129.80 bn. The advance/decline ratio stood at 0.57:1 from 0.25:1 for stocks traded on NSE.

The Nifty on the hourly chart is forming wave 5 of Elliott waves which is likely to get complete at 5570 levels. Currently it took support at 78.6% of wave one at 5630, but faced resistance at 61.8% at 5685. The RSI(14) on the hourly chart is also forming bottom but is likely to face resistance from the lower range of bullish band.

The Nifty on the daily chart has almost completed Gartley buy pattern today as it touched 78.6% retracement of swing High/Low 6229/5477 and managed to close above it. The pattern will be confirmed once the market closes positive for two more consecutive days. So keep a watch on this reversal pattern.

The Nifty on the weekly chart took support at 61.8% retracement of swing High/Low 6338/4531 and managed to close above it. The RSI(14) on the weekly chart is still on downward sloping which will act at resistance for market to move up from current levels. Since next week is expiry week we expect market to remain volatile coupled with uncertain global cues. So far market has witnessed rollover in Nifty at 13.43% and stocks at 14.81%.

Source : Equity Bulls

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