Nifty closes on flat note at 6054 - AXIS DIRECT

Nifty opened the session on a flat note and remained lackluster in initial half. However in later half index witnessed high volatility which led it to close on a flat note at 6054 with marginal 6 points gain.

On the daily chart Nifty has formed a small bull candle with long lower shadow indicating buying at lower levels. However Nifty maintains lower high-low formation suggesting bearish bias. At current levels Nifty is placed near the immediate intraday resistance of 6080 levels and any sustainable move above 6080 would accelerate further upside in the range of 6120-6150 levels. On the downside any violation of previous session low (6021) and close below the same would signal a short term correction and Nifty may test Channel's lower end support of 5950 levels. Presently Nifty is still sustaining above its short term 13 day EMA(6023) and 20 day SMA(5995) which acts as a short term support.

The daily strength indicator RSI has turned negative from overbought zone indicating loss of upside strength and nifty may drift further. The momentum indicator Stochastic has also given a negative crossover from overbought zone which signals a loss of momentum.

The trend deciding level for the day is 6050, If NIFTY trades above this level then we may witness a further rally up to 6075-6100-6125 levels. However, if NIFTY trades below 6050 levels then we may see some profit booking initiating in the market, which may correct up to 6025-6000-5975 levels.

Stocks to focus for intraday Long: Sun Tv, BhartiAirtl, Tata Power, LIC

Stocks to focus for intraday Short: KTK Bk, IRB, Union Bk, IDFC, BharatForge, Ranbaxxy

Source : Equity Bulls

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