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Nifty

Nifty opened on a flat note and remained in a small range throughout the day. Nifty closed at 17369 with a gain of 16 points.

On the daily chart index has formed a bullish candle however it remained restricted within previous session's High-Low range indicating absence of strength on eitherside. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 17400 level it would witness buying which would lead the index towards 17500-17600 levels. However if index breaks below 17300 level it would witness selling which would take the index towards 17200-17100. Nifty is trading above 20 and 50 day SMA's indicating positive 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 upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 17350. If NIFTY trades above this level then we may witness a further rally up to 17400-17425-17475 levels. However, if NIFTY trades below 17350 levels then we may see some profit booking initiating in the market, which may correct up to 17320-17275-17245 levels

Banknifty

Banknifty opened with a downward gap and traded with extreme volatility on either side and witnessed short covering at the end of the day.. Banknifty closed at 36683 with a loss of 85 points.

On the daily chart index has formed a bearish candle however it remained restricted within previous session's High-Low range indicating absence of strength on eitherside. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Banknifty crosses and sustains above 36800 level it would witness buying which would lead the index towards 37000-37300 levels. Important Supports for the day is around 36500 However if index sustains belwo 36500 then it may witness profit booking which would take the index towards 36300-36000 levels.. Banknifty is trading above 20 and 50 day SMA's indicating positive 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 36700. If BANK NIFTY trades above this level then we may witness a further rally up to 36840-36995-37130 levels. However, if BANK NIFTY trades below 36700 levels then we may see some profit booking initiating in the market, which may correct up to 36550-36410-36255 levels

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