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Nifty

Nifty opened with a downward gap but witnessed buying from the opening tick to end positive. Nifty closed at 16478 with a gain of 122 points. On the daily chart index has formed a bullish candle and has closed near the day's high indicating positive 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 crosses and sustains above 16500 level it would witness buying which would lead the index towards 16600-16700 levels. However if index breaks below 16400 level it would witness selling which would take the index towards 16300-16250. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 is moving upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 16405. If NIFTY trades above this level then we may witness a further rally up to 16565-16655-16815 levels. However, if NIFTY trades below 16405 levels then we may see some profit booking initiating in the market, which may correct up to 16315-16155-16070 levels.

Bank Nifty

Banknifty opened with a downward gap however buying support at lower levels pulled index to end on a positive note. Banknifty closed at 35085 with a gain of 139 points. On the daily chart index has formed a bullish candle and has closed near the day's high indicating positive 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 35200 level it would witness buying which would lead the index towards 35500-35800 levels. However if index breaks below 34900 level it would witness selling which would take the index towards 34800-34600. Banknifty is trading above 20 day SMA's indicating positive 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 is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 34965. If BANK NIFTY trades above this level then we may witness a further rally up to 35270-35455-35760 levels. However, if BANK NIFTY trades below 34965 levels then we may see some profit booking initiating in the market, which may correct up to 34780-34475-34290 levels.

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