Banknifty opened on a flat note and witnessed extreme volatality - Axis Securities
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Nifty
Nifty opened on a positive note and extended buying momentum in the first half however heavy selling in the second half led the index to close on a negative note. Nifty closed at 15109 with a loss of 7 points. On the daily chart the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance at higher levels.
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 breaks and sustains below 15000 level it would witness selling which would lead the index towards 14800-14500 levels.
Important Resistances for the day are placed at 15300-15400. Nifty is trading above its 20 day SMA which indicates positive bias in the short term. Nifty 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 has turned positive from the oversold territory and is above its reference line indicating sustained uptrend.
The trend deciding level for the day is 15145. If NIFTY trades above this level then we may witness a further rally up to 15225-15335-15415 levels. However, if NIFTY trades below 15145 levels then we may see some profit booking initiating in the market, which may correct up to 15030-14950-14835 levels
Banknifty
Banknifty opened on a flat note and witnessed extreme volatality on eitherside for most part of the session. Banknifty closed at 36057 with a gain of 73 points.
On the daily chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market 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 Banknifty crosses and sustains above 36200 level it would witness buying which would lead the index towards 36600-36900 levels. However if index breaks below 35700 level it would witness selling which would take the index towards 35500-35000.
Banknifty is trading above 20 and 50 day SMA's indicating positive bias in the short to medium 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 has turned positive from the oversold territory and is above its reference line indicating sustained uptrend.
The trend deciding level for the day is 36055. If BANK NIFTY trades above this level then we may witness a further rally up to 36475-36895-37315 levels. However, if BANK NIFTY trades below 36055 levels then we may see some profit booking initiating in the market, which may correct up to 35635-35215-34795 levels.
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