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Nifty

Nifty opened with an downward gap but witnessed buying from the opening tick to end positive. Nifty closed at 14744 with a gain of 186 points. On the daily chart the index has formed a Bullish candle with a 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 breaks and sustains below 14650 level it would witness selling which would lead the index towards 14500-14400 levels. Important Resistances for the day are placed at 14900-15000.

Nifty is trading below 20 day SMA indicating negative 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 is moving downwards and is quoting below its reference line indicatin g negative bias. The trend deciding level for the day is 14625. If NIFTY trades above this level then we may witness a further rally up to 14905-15065-15345 levels. However, if NIFTY trades below 14625 levels then we may see some profit booking initiating in the market, which may correct up to 14465-14190-14030 levels.

Bank Nifty

Banknifty opened with an downward gap but witnessed buying from the opening tick to end positive. Banknifty closed at 34162 with a gain of 305 points. On the daily chart the index has formed a Bullish candle with a 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 Banknifty crosses and sustains above 34200 level it would witness buying which would lead the index towards 34600-35000 levels. However if index breaks below 33800 level it would witness selling which would take the index towards 33300-33000.

Banknifty is trading below 20 day SMA indicating negative 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 is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 33960.

If BANK NIFTY trades above this level then we may witness a further rally up to 34560-34955-35550 levels. However, if BANK NIFTY trades below 33960 levels then we may see some profit booking initiating in the market, which may correct up to 33565-32965-32570 levels

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