Nifty closes at 5840.55, down 10.05 points - Indsec Securities & Finance

The Nifty closed the day negative down 10.05 (0.17%) points at 5840.55 from 5850.60 Friday, on the back of good volumes. Major loser in Nifty were Ranbaxy (-30.34%), BHEL (-5.04%) and HCL Tech (-4.72%) whereas major gainers were BPCL (+4.16%), Indusind Bank (+3.59%) and Maruti (+3.34%).

The volume in the cash market for both NSE and BSE put together was up 10.00% to Rs. 141.30 bn from Rs. 128.60 bn. The advance/decline ratio stood at 0.70:1 from 1.54:1 for stocks traded on NSE.

Nifty Hourly Chart opened positive on account of global cues and slowly drifted downward on good volumes but recovered back to close the day flat. The market moved between 100.0% (5781) and 127.2% (5906) extension levels of swing High/Low 5581/5118. The market closed at day's low on back of profit booking. The Nifty is likely to complete AB=CD sell pattern at 161.8% extension levels. The RSI(14) is forming hidden positive divergence on hourly chart with RSI(14) retracing more than price, thereby indicating prices likely to move in the direction of trend (Up).

Nifty Daily Chart faced resistance at 70.7% (5904) retracement of swing High/Low 6229/5118 but it closed below it. The RSI(14) reversed from the upper range of bearish band and has once again started moving down.

Source : Equity Bulls

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