Nifty closes up 63.30 points - Indsec Securities & Finance

The Nifty closed the day positive up 63.30 (1.17%) points at 5471.75 from 5408.45 Thursday, on the back of low volumes. Nifty Index and Stock Futures rollover to next expiry were 19.93% and 14.47% respectively. Major loser in Nifty were DLF (-4.80%), Ultratech Cements (-3.29%) and Sesa Goa (-1.77%) whereas major gainers were BHEL (+8.05%), HCL Tech (+4.88%) and Tata Power (+4.55%).

The volume in the cash market for both NSE and BSE put together was down 13.00% to Rs. 139.80 bn from Rs. 160.00 bn. The advance/decline ratio stood at 1.70:1 from 1.49:1 for stocks traded on NSE.

Nifty Hourly Chart after forming positive divergence on RSI and Wolfe Wave Buy Pattern has reversed from low of 5254.05 to close just below 27.2% retracement level of swing High/Low of 6093/5254.we see market facing resistance at 5525 - 5625 levels going forward as Wolfe Wave target price and retracements levels shows these levels. The RSI(14) has also moved up faster than the prices, thereby indicating hidden negative divergence.

Nifty Daily Chart after forming Butterfly Buy pattern reversed from low of 5254 level to face resistance at 100.0% retracement level of 5477 and closed below it. The RSI(14) on daily chart managed to close just above the lower range of bullish band giving hope of further rally next week, but is likely to face resistance at RSI(14) 50 levels.

Nifty Weekly Candle stick Chart has formed hammer pattern, a sign of reversal is due. The only negative which can go wrong with Hammer pattern is that RSI(14) has closed below the lower range of bullish band. This is likely to act as resistance for market to reverse or move up.

Since next week is expiry week major focus will be on rollovers and also how INR moves is very important. So keep watching...

Source : Equity Bulls

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