NIFTY closes down 86.65 Points at 5770.90 - Indsec Securities & Finance

The Nifty closed the day negative down 86.65 (1.48%) points at 5770.90 from 5857.55 Tuesday, on the back of flat volumes. Major loser in Nifty were JP Associates (-8.55%), Bank of Baroda (-7.93%) and IDFC (-5.98%) whereas major gainers were Lupin (+3.65%), Sun Pharma (+1.18%) and Jindal Steel & Power (+1.05%).

The volume in the cash market for both NSE and BSE put together was up 0.05% to Rs. 120.95 bn from Rs. 120.90 bn. The advance/decline ratio stood at 0.36:1 from 0.91:1 for stocks traded on NSE.

Nifty on the hourly chart faced resistance at 38.2% retracement of swing High/Low 6229/5566 and closed below it on the back of flat volumes. The RSI(14) on the hourly chart managed to closed just above the lower range of bullish band, thereby indicating minor support at current levels.

Nifty on the daily chart is forming AB=CD pattern with prices falling to take support at 27.2% (5770) extension of swing High/Low6229/5450 and closed above it. If the market were to close negative for another two days, then the AB=CD pattern will get negated and downside AB=CD pattern will start to get formed with new target price even breaching previous bottom of 5570.

Source : Equity Bulls

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