Bank Nifty opened with a downward gap however buying support at lower levels pulled the index - Axis Securities
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Nifty
Nifty opened sharply lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels recovered some of the earlier losses. Nifty closed at 17393 with a loss of 73 points.
On the daily chart the index has formed a Bearish candle with a lower shadow indicating buying at lower levels. The index is holding above 17300 which is a confluence of 200 SMA, Budget day low and bullish gap area indicating strong support zone. The chart pattern suggests that if Nifty crosses and sustains above 17450 level it would witness buying which would lead the index towards 17500-17600 levels. Important Support for the day is around 17350 However if index sustains below 17350 then it may witness profit booking which would take the index towards 17300- 17200 levels.. Nifty is trading above longer term averages of 200 SMA indicating positive bias in the medium term.. Nifty continues to remain in an uptrend for the medium 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 17380. If NIFTY trades above this level then we may witness a further rally up to 17465-17535-17615 levels. However, if NIFTY trades below 17380 levels then we may see some profit booking initiating in the market, which may correct up to 17310-17230-17160 levels.
Bank Nifty
Banknifty opened with a downward gap however buying support at lower levels pulled the index to end on a positive note. Banknifty closed at 40307 with a gain of 398 points.
On the daily chart index has formed a bullish candle which engulfed the previous session representing positive bias ahead. The index breaks above the short term falling channel from a high of 41980 indicating positive bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 40500 level it would witness buying which would lead the index towards 40600-40800 levels. Important Support for the day is around 40150 However if index sustains below 40150 then it may witness profit booking which would take the index towards 40000-39900 levels. Banknifty is trading above its 200 day SMA which indicates positive bias in the short 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 at a verge of crossover above its reference line. Sustaining above its reference line will turn bias positive.
The trend deciding level for the day is 40140. If BANK NIFTY trades above this level then we may witness a further rally up to 40535-40765-41165 levels. However, if BANK NIFTY trades below 40140 levels then we may see some profit booking initiating in the market, which may correct up to 39910-39515-39285 levels
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