Nifty closes at 5914 with 28 point loss - AXIS Direct

The benchmark indices opened on a flat note and witnessed profit booking throughout the session. Nifty closed at 5914 with 28 point loss.

Nifty on the daily chart has formed a sizable bear candle ending below previous session low which represents negative bias in the near term. Nifty has witnessed profit booking near multiple supply zone of 5970-5990 levels which remains a crucial hurdle. On the hourly chart Nifty is placed at immediate support around 5890 levels and any decisive trade below this would trigger a further downside in the range of 5840-5810 levels. On the downside the short term support is at 5853 and 5817 which are 38.2% and 50% Fibonacci retracement levels respectively of the current rally (5663 to 5971). This support zone also coincides with the 20-day SMA(5849) and 100-day SMA(5855). In the near term these support would remain as a buying opportunity for the short term.

The daily strength indicator RSI has turned flat which signals a reduced strength. The daily Stochastic momentum indicator has given a negative crossover from overbought zone signals bearish bias.

The trend deciding level for the day is 5920, If NIFTY trades above this level then we may witness a further rally up to 5945-5980-6005 levels. However, if NIFTY trades below 5920 levels then we may see some profit booking initiating in the market, which may correct up to 5885-5860-5830 levels.

Stocks to focus for intraday Long: Biocon, Exide Ind., ACC, Hindunilvr, SAIL, Bata Ind., Ranbaxy

Stocks to focus for intraday Short: Jsw Steel, Rec, BHEL, Bhartiartl, LIC , FinTech, Bajaj Auto, Cipla

Source : Equity Bulls

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