NIFTY closes down 75.55 Points at 5955.25 - Indsec Securities & Finance

The Nifty closed the day negative down 75.55 (1.13%) points at 5955.25 from 6030.80 Monday, on the back of good volumes. Major loser in Nifty were Indusind Bank (-7.89%), DLF (-7.63%) and JP Associates (-7.42%) whereas major gainers were Bharti (+2.11%), ITC (+2.11%) and Ambuja Cements (+2.03%).

The volume in the cash market for both NSE and BSE put together was up 18.00% to Rs. 121.50 bn from Rs. 102.90 bn. The advance/decline ratio stood at 0.47:1 from 1.44:1 for stocks traded on NSE.

Nifty opened negative on account of steps taken by RBI to contain volatility in the foreign exchange market and tighten liquidity in the system. The market opened down 100 points and recovered during the day as buying at lower levels help market to recover. Nifty took support at 27.2% retracement of swing High/Low 6038/5566 and closed above it. The RSI(14) on the hourly chart came down sharply to close just above 50 level.

Nifty on the daily chart is also forming AB=CD pattern and it faced resistance at 61.8% of AB extension at 6031. The RSI(14) on the daily chart reversed from the upper range of bearish band and is on its way down to test 50 level.

Source : Equity Bulls

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