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Nifty

Nifty opened lower with a downward gap and reamined lackluster within a narrow trading range throughout the session. Nifty closed at 18090 with a loss of 58 points.

On the daily chart the index has formed a bearish candle with a lower shadow indicating buying at lower 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 crosses and sustains above 18200 level it would witness buying which would lead the index towards 18300-18400 levels. Important Support for the day is around 18000 However if index sustains below 18000 then it may witness profit booking which would take the index towards 17900-17800 levels.. Nifty is trading above 20, 50, 100 and 200 day SMA indicating positive 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 upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 18085. If NIFTY trades above this level then we may witness a further rally up to 18125-18155-18195 levels. However, if NIFTY trades below 18085 levels then we may see some profit booking initiating in the market, which may correct up to 18050-18010-17975 levels.

Banknifty

Banknifty opened with a downward gap however buying support at lower levels pulled the index higher and helped the index recover some losses. Banknifty closed at 43313 with a loss of 39 points.

On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as 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 crosses and sustains above 43500 level it would witness buying which would lead the index towards 43600-43700 levels. Important Support for the day is around 43150 However if index sustains below 43150 then it may witness profit booking which would take the index towards 43000-42900 levels. Banknifty is sustaining above its 20, 50, 100 and 200- day SMA which signals bullish sentiments in near 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 43250. If BANK NIFTY trades above this level then we may witness a further rally up to 43420-43525-43695 levels. However, if BANK NIFTY trades below 43250 levels then we may see some profit booking initiating in the market, which may correct up to 43140-42970-42865 levels.

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