Banknifty opened on a flat note but selling led the index downwards to end in red - Axis Securities
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Nifty
Nifty opened on a flat note but selling led the index downwards to end in red. Nifty closed at 14721 with a loss of 189 points. On the daily chart the index has formed a big bearish candle and has violated multiple day support of 14850 indicating negative bias.. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias.
The chart pattern suggests that if Nifty breaks and sustains below 14600 level it would witness selling which would lead the index towards 14500-14400 levels. Important Resistances for the day are placed at 15000-15200. Nifty is trading below 20 day SMA indicating negative bias in the short to medium term.
Nifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 14790.
If NIFTY trades above this level then we may witness a further rally up to 14885-15050-15145 levels. However, if NIFTY trades below 14790 levels then we may see some profit booking initiating in the market, which may correct up to 14625-14530-14365 levels
Banknifty
Banknifty opened on a flat note but selling led the index downwards to end in red. Banknifty closed at 34229 with a loss of 575 points. On the daily chart the index has formed a big bearish candle and has violated multiple day support of 34700 indicating negative bias..
The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 34300 level it would witness buying which would lead the index towards 34700-35000 levels. However if index breaks below 34000 level it would witness selling which would take the index towards 33700-33400. Banknifty is trading below 20 day SMA indicating negative bias in the short to medium term.
Banknifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI continue to remian flat and is below its reference line indicating absence of momentum on either side The trend deciding level for the day is 34485.
If BANK NIFTY trades above this level then we may witness a further rally up to 34845-35460-35820 levels. However, if BANK NIFTY trades below 34485 levels then we may see some profit booking initiating in the market, which may correct up to 33870-33510-32895 levels
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