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Nifty

Nifty opened sharply lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels erased most of the earlier losses to close near the day's high. Nifty closed at 17110 with a loss of 168 points.

On the daily chart the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. 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 17200 levels it would witness buying which would lead the index towards 17300-17400 levels. However if index breaks below 17000 level it would witness selling which would take the index towards 16900-16800. Nifty is trading below 20, 50 day SMA indicating negative bias in the short to 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 is moving downwards and is quoting below its reference line indicating negative bias.

The trend deciding level for the day is 17055. If NIFTY trades above this level then we may witness a further rally up to 17240-17370-17555 levels. However, if NIFTY trades below 17055 levels then we may see some profit booking initiating in the market, which may correct up to 16925-16735-16610 levels.

Banknifty

Banknifty opened with a downward gap however buying support at lower levels pulled the index to end on a positive note. Banknifty closed at 37982 with a gain of 275 points.

On the daily chart index has formed a bullish candle and has closed above its previous session's high representing positive bias ahead. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 38200 level it would witness buying which would lead the index towards 38400-38700 levels. However if index breaks below 38000 level it would witness selling which would take the index towards 37800-37600. Banknifty is trading above 20 and 50 day SMA indicating positive bias in the short to medium term. Banknifty continues to remain in an uptrend in the long term, so accumulation on dips and near major support zones continues to be our preferred strategy.

The daily strength indicator RSI has turned positive and is above its reference line indicating sustained strength.

The trend deciding level for the day is 37715. If BANK NIFTY trades above this level then we may witness a further rally up to 38415-38850-39550 levels. However, if BANK NIFTY trades below 37715 levels then we may see some profit booking initiating in the market, which may correct up to 37280-36580-36145 levels.

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