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Nifty

Nifty opened on a positive note and extended buying momentum in the initial hour however selling pressure at higher levels dragged index lower to close near the day's low. Nifty closed at 17624 with a gain of 25 points. On the daily chart the index has formed a small Bearish candle with upper shadow indicating selling pressure as well as resistance around 17700. Index is trading in a falling channel; the upper band of the falling channel which is placed at 17700 will act as crucial resistance. On the other hand, 16850-16700 is a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. The chart pattern suggests that if Nifty crosses and sustains above 17700 level it would witness buying which would lead the index towards 17800-17900 levels. Important Support for the day is around 17600 However if index sustains below 17600 then it may witness profit booking which would take the index towards 17500-17400 levels. Nifty is trading below its 100 day SMA which indicates negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI has turned positive from the oversold territory and is above its reference line indicating a pullback in the short term. . The trend deciding level for the day is 17640. If NIFTY trades above this level then we may witness a further rally up to 17680-17735-17775 levels. However, if NIFTY trades below 17640 levels then we may see some profit booking initiating in the market, which may correct up to 17585-17545-17485 levels.

Banknifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a negative note. Banknifty closed at 40835 with a loss of 206 points. On the daily chart, the index has formed a bearish candle forming lower High-Low compared to previous session and has also closed below previous session’s low indicating further weakness. The index is facing a resistance at upper band of falling channel around 41300. The chart pattern suggests that if Nifty crosses and sustains above 41000 level it would witness buying which would lead the index towards 41150-41300 levels. Important Supports for the day is around 40700 However if index sustains below 40700 then it may witness profit booking which would take the index towards 40500-40400 levels.. Banknifty is trading below 100 day SMA indicating negative bias in the short to medium term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI continue to remain flat and is above its reference line indicating absence of momentum on either side, The trend deciding level for the day is 40900. If BANK NIFTY trades above this level then we may witness a further rally up to 41075-41315-41485 levels. However, if BANK NIFTY trades below 40900 levels then we may see some profit booking initiating in the market, which may correct up to 40660-40490-40250 levels.

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