Nifty closes up 46.55 points at 5565.65 - Indsec Securities & Finance

The Nifty closed the day positive up 46.55 (0.84%) points at 5565.65 from 5519.10 Wednesday, on the back of low volumes. Major loser in Nifty were Lupin (-3.25%), Sun Pharma (-3.13%) and SBI (-3.03%) whereas major gainers were Ranbaxy (+27.60%), Hindalco (+6.01%) and DLF (+5.42%).

The volume in the cash market for both NSE and BSE put together was down 10.00% to Rs. 127.70 bn from Rs. 141.60 bn. The advance/decline ratio stood at 2.18:1 from 1.62:1 for stocks traded on NSE.

Nifty on the hourly chart opened negative and moved up slowly during the day to close positive. The RSI(14) after forming positive divergence also helped market to move up as short covering helped market to remain positive. The volumes in both cash and derivative markets were low as compared to yesterday.

Nifty on the daily chart reversed just above the 100% retracement levels of swing high/low of 6229/5477 and managed to close above 88.6% (5563). The RSI(14) also formed bottom and have once again started moving up. The market is likely to face resistance at the lower range of bullish RSI(14) band.

Nifty on the weekly chart closed just above the 38.2% (5540) extension of swing High/Low 6338/4531. We expect the market to take support at this level, but it would face resistance at 5640 on the higher side. The RSI(14) has closed just above lower range of bullish band indicating buying support coming at this level.

Source : Equity Bulls

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