Nifty drifts lower to close at 5938 - AXISDirect

Nifty opened the session with a downward gap and witness buying momentum in initial hours however selling pressure at higher levels drift index lower to close at 5938 with 20 points loss.

On the daily chart Nifty has formed a Doji candlestick pattern with long upper shadow indicating selling pressure at higher levels. Nifty continue its downward momentum forming lower high-low formation which represents down trend. With current close Nifty is placed below its short term 20 day SMA (6023) and 50 day SMA (5958) which would now act as short term resistance. The hourly chart indicators are hovering around oversold zone along with positive divergence which may cause for a short term pullback action in the range of 5970-5990 levels. However a drift below 5927 would trigger an accelerated selling towards 5900-5880 levels. The short term trend is still remains down as index is moving with lower Top and Bottom formation.

The daily strength indicator RSI is in bearish mode below 50 mark supports bearish sentiments. However the momentum indicator -Stochastic has turned bullish from oversold zone along with positive crossover which suggests a short term pullback rally.

The trend deciding level for the day is 5950, If NIFTY trades above this level then we may witness a further rally up to 5970-6000-6020 levels. However, if NIFTY trades below 5950 levels then we may see some profit booking initiating in the market, which may correct up to 5920-5900-5865 levels.

Stocks to focus for intraday Long: Powergrid, Godrej Ind., Bata Ind., M&M, Adani Port, Federal Bk., Grasim

Stocks to focus for intraday Short: Ibreaest, KTK Bk, Idea, Auropharma, Sesa Goa, Gail, SunTv, Tata Steel

Source : Equity Bulls

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