Nifty Closes Down 49.05 Points - Indsec Securities & Finance

The S&P CNX Nifty closed the day negative down 49.05 (0.83%) points at 5833.20 from 5882.25 Thursday, on the back of low volumes. Major loser in S&P CNX Nifty were JP Associates (-4.81%), BHEL (-4.64%) and Tata Steel (-4.17%) whereas major gainers were BPCL (+6.27%), HCL Tech (+1.95%) and Sun Pharma (+1.47%).

The volume in the cash market for both NSE and BSE put together was down 19.00% to Rs. 113.20 bn from Rs. 139.70 bn. The advance/decline ratio stood at 0.84:1 from 1.08:1 for stocks traded on NSE.

S&P CNX Nifty on the hourly chart opened positive on account of global cues, but could not sustain at higher level as profit taking led the market to close at day’s low. The cash volumes were also down by 19.00% in the absence of fresh buying. The RSI(14) after facing resistance at 50 level twice came down to close below lower range of bullish band. The RSI(14) is likely to form positive divergence. We expect market to take support at 5750 levels.

S&P CNX Nifty on the daily chart is forming AB=CD pattern, and today it breached 27.2% (5840) extension support and closed just below it. The RSI(14) is on its way to 50 level and is likely to take support at that level.

S&P CNX Nifty on the weekly chart has formed evening star pattern and is going to act as good resistance at higher levels. The RSI(14) is also very near to 50 level and is likely to take support here.

Source : Equity Bulls

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