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Nifty

Nifty opened on a flat note and witnessed extreme volatility on either side for most part of the session. Nifty closed at 14956 with a gain of 18 points.

On the daily chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst 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 Nifty breaks and sustains below 14900 level it would witness selling which would lead the index towards 14800-14700 levels. Important Resistances for the day are placed at 15300-15400. Nifty is trading above 20 and 50 day SMA's indicating positive bias in the short to medium 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 continue to remian flat and is below its reference line indicating absence of momentum on either side The trend deciding level for the day is 14995.

If NIFTY trades above this level then we may witness a further rally up to 15070-15185-15265 levels. However, if NIFTY trades below 14995 levels then we may see some profit booking initiating in the market, which may correct up to 14880-14805-14690 levels.

Banknifty

Banknifty opened on a flat note and witnessed extreme volatility on either side for most part of the session. . Banknifty closed at 35276 with a gain of 48 points.

On the daily chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst 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 35700 level it would witness buying which would lead the index towards 36100-36600 levels. However if index breaks below 35000 level it would witness selling which would take the index towards 34700-34200. 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 continue to remain flat and is below its reference line indicating absence of momentum on either side The trend deciding level for the day is 35400.

If BANK NIFTY trades above this level then we may witness a further rally up to 35705-36135-36440 levels. However, if BANK NIFTY trades below 35400 levels then we may see some profit booking initiating in the market, which may correct up to 34970-34660-34230 levels

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