Nifty closed up 2.70 points - Indsec Securities & Finance Ltd.

The Nifty closed the day positive up 2.70 (0.04%) points at 5892.45 from 5889.75 Monday, on the back of flat volumes. Nifty and Stocks future rollover to the next expiry were at 47.43% and 43.85% respectively. Major loser in Nifty were Hindalco (-3.90%), Coal India (-2.54%) and BPCL (-2.49%) whereas major gainers were Bajaj Auto (+2.65%), Tata Power (+2.34%) and NTPC (+1.86%).

The volume in the cash market for both NSE and BSE put together was down 0.10% to Rs. 127.10 bn from Rs. 127.20 bn. The advance/decline ratio stood at 0.88:1 from 0.60:1 for stocks traded on NSE.

Nifty Hourly Chart opened negative on account of global cues and remained range bound through the day. The market took support at 5865 (27.2%) retracement level. The market is currently going through time correction rather than price correction as can be seen from RSI(14) on hourly chart. The RSI(14) has come down rapidly as compared to price retracement, thereby indicating hidden positive divergence and is likely to find support at current levels.

Nifty Daily Chart is forming AB=CD pattern with likely support at 27.2% extension level of 5840. The RSI(14) is likely to take support at 50 level.

Source : Equity Bulls

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