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Nifty

Nifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Nifty closed at 14239 with a loss of 133 points. On the daily chart the index has formed a big bearish candle after facing major resistance near the 14750 level.

The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Nifty breaks and sustains below 14200 level it would witness selling which would lead the index towards 14000-13800 levels. Important Resistances for the day are placed at 14500-14700. Nifty is trading below its 20 day SMA which indicates negative bias in the short 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 indicating negative bias.

The trend deciding level for the day is 14315. If NIFTY trades above this level then we may witness a further rally up to 14415-14590-14685 levels. However, if NIFTY trades below 14315 levels then we may see some profit booking initiating in the market, which may correct up to 14140-14045-13870 levels.

Banknifty

Banknifty opened with an upward gap and remained lackluster within narrow trading range throughout the day. Banknifty closed at 31198 with a gain of 31 points. On the daily chart the index has formed a bearish candle but is currently trading at all time highs indicating that current price action might just be a pullback.. 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 31500 level it would witness buying which would lead the index towards 32000-32500 levels. However if index breaks below 31000 level it would witness selling which would take the index towards 30700- 30300.

Banknifty is trading below its 20 day SMA which indicates negative bias in the short 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 31305. If BANK NIFTY trades above this level then we may witness a further rally up to 31595-31985-32275 levels. However, if BANK NIFTY trades below 31305 levels then we may see some profit booking initiating in the market, which may correct up to 30910-30620-30225 levels.

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