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Nifty

Nifty opened on a positive note and witnessed profit booking in initial hours however buying support at lower pulled index higher to close on a positive note. Nifty closed at 19343 on 29th August with a gain of 37 points.

On the daily chart the index has formed a small bearish candle with a lower shadow indicating buying at lower levels. The 19450 level presents a crucial confluence of a downward sloping trendline and the 20 SMA; a definitive daily close above this juncture would signal the continuation of Nifty's medium-term uptrend The index continues to move in a lower top and lower bottom formation on the daily chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 19400 level it would witness buying which would lead the index towards 19500-19600 levels. Important support for the day is around 19300 however if index sustains below 19300 then it may witness profit booking which would take the index towards 19200-19100 levels. Nifty is trading above 100 and 200 day SMA indicating positive bias in the medium term. Nifty continues to remain in a downtrend in the short term, so selling on rallies continues to be our preferred strategy

The daily strength indicator RSI continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 19345. If NIFTY trades above this level then we may witness a further rally up to 19375-19410-19445 levels. However, if NIFTY trades below 19345 levels then we may see some profit booking initiating in the market, which may correct up to 19310-19275-19240 levels.

Bank Nifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a flat note. Banknifty closed at 44495 on 29th August with a gain of 1 point.

On the daily chart the index has formed a bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. The index appears to be forming an Inverted Head and Shoulders (IHS) pattern, and a close above 45000 would validate the bullish reversal pattern.The index continues to move in a lower top and lower bottom formation on the daily chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 44600 level it would witness buying which would lead the index towards 44700-44800 levels. Important support for the day is around 44400 however if index sustains below 44400 then it may witness profit booking which would take the index towards 44300-44150 levels.Banknifty is sustaining above its 100 and 200- day SMA which signals bullish sentiments in near term. Banknifty continues to remain in a downtrend in the short 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 44535. If BANK NIFTY trades above this level then we may witness a further rally up to 44635-44775-44880 levels. However, if BANK NIFTY trades below 44535 levels then we may see some profit booking initiating in the market, which may correct up to 44390-44290-44150 levels.

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