Nifty closes up 73.90 points at 6009 - Indsec Securities & Finance

The Nifty closed the day positive up 73.90 (1.24%) points at 6009.00 from 5935.10 Thursday, on the back of good volumes. Major loser in Nifty were Maruti (-3.83%), JP Associates (-3.32%) and ONGC (-2.69%) whereas major gainers were Infosys (+10.91%), IDFC (+3.33%) and L&T (+3.18%).

The volume in the cash market for both NSE and BSE put together was up 19.00% to Rs. 119.90 bn from Rs. 100.90 bn. The advance/decline ratio stood at 0.89:1 from 1.58:1 for stocks traded on NSE.

Nifty on the hourly chart is forming AB=CD pattern and faced resistance at 61.8% of AB extension at 6011 and closed just below it. The RSI(14) on the hourly chart breached the upper range of bearish band and moved towards upper range of bullish band and closed very near it. Going forward we expect RSI(14) to form negative divergence as market form high.

Nifty on the daily chart is also forming AB=CD pattern and is very close to 61.8% of AB extension at 6031. The RSI(14) on the daily chart is on its way to touch the upper range of bearish band, which is likely to act as resistance.

Nifty on the weekly chart is forming AB=CD pattern and is very close to 38.2% of AB extension at 6091. Since result season has started with announcement of Indusind Bank and Infosys results, next week we expect the market to remain volatile as various companies are about to announce their Q1 results.

Source : Equity Bulls

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