Nifty crosses and sustains above 42800 level - Axis Securities
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Nifty
Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. On 25th April, Nifty closed at 17769 with a gain of 26 points. On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 17800 level it would witness buying which would lead the index towards 17900- 18000 levels. Important Support for the day is around 17700 However if index sustains belwo 17700 then it may witness profit booking which would take the index towards 17600-17500 levels. Nifty is trading above 20, 50 and 200 day SMA indicating positive bias in the short to medium term. Nifty continues to remain in an uptrend for the short 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 17765. If NIFTY trades above this level then we may witness a further rally up to 17810-17855-17905 levels. However, if NIFTY trades below 17765 levels then we may see some profit booking initiating in the market, which may correct up to 17720-17675-17630 levels.
Banknifty
Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. . On 25th April, Banknifty closed at 42679 with a gain of 43 points. On the daily chart the index has formed a small bearish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 42800 level it would witness buying which would lead the index towards 43000-43100 levels. Important Support for the day is around 42500 However if index sustains below 42500 then it may witness profit booking which would take the index towards 42300-42200 levels. Banknifty is sustaining above its 20, 50, 100 and 200 day SMA which signals bullish sentiments in near 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 42715. If BANK NIFTY trades above this level then we may witness a further rally up to 42830-42980-43095 levels. However, if BANK NIFTY trades below 42715 levels then we may see some profit booking initiating in the market, which may correct up to 42565-42450-42300 levels.
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