Banknifty opened with a downward gap and selling pressure throughout the session - Axis Securities
Nifty
Nifty opened with a downward gap and selling pressure throughout the session led it to close on a negative note. Nifty closed at 17892 with a loss of 226 points.
On the daily chart the index has formed a sizable bearish candle and has closed below previous session's low indicating negative bias. Index is facing a resistance at a downward sloping trendline from the all-time high on the other hand it is taking support around the gap area of 17800 level. The chart pattern suggests that if Nifty crosses and sustains above 18000 level it would witness buying which would lead the index towards 18100-18200 levels. Important Support for the day is around 17800 However if index sustains belwo 17800 then it may witness profit booking which would take the index towards 17700-17600 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 short term, so buying on dips continues to be our preferred strategy.
The daily strength indicator RSI has turned negative from the 50 mark and is below its reference line indicating profit booking.
The trend deciding level for the day is 17945. If NIFTY trades above this level then we may witness a further rally up to 18045-18200-18300 levels. However, if NIFTY trades below 17945 levels then we may see some profit booking initiating in the market, which may correct up to 17790-17690-17535 levels.
Banknifty
Banknifty opened with a downward gap and selling pressure throughout the session dragged it lower to close on a negative note. Banknifty closed at 41648 with a loss of 1086 points.
On the daily chart the index has formed a sizable bearish candle and violated previous session's low indicating further weakness. The index approaches the gap area and previous swing low of 41569 which is a crucial level to watch out going forward. The chart pattern suggests that if Nifty crosses and sustains above 41800 level it would witness buying which would lead the index towards 42000-42200 levels. Important Support for the day is around 41500 However if index sustains below 41500 then it may witness profit booking which would take the index towards 41300-41100 levels. Banknifty is trading above its 200 day SMA indicates positive bias in the 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 negative from the 50 mark and is below its reference line indicating profit booking.
The trend deciding level for the day is 41975. If BANK NIFTY trades above this level then we may witness a further rally up to 42405-43165-43600 levels. However, if BANK NIFTY trades below 41975 levels then we may see some profit booking initiating in the market, which may correct up to 41215-40780-40020 levels.
To Read Complete Report & Disclaimer Click Here
For More Axis Securities Disclaimer https://simplehai.axisdirect.in/disclaimer-home
SEBI Registration number is INZ000161633
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer