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Nifty

Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Nifty closed at 19396 on 22nd August with a gain of 3 points

On the daily chart the index has formed a small bearish candle with a long upper shadow indicating selling pressure as well as resistance at the upper band of the falling channel. The index continues to move in a lower top and lower bottom formation on the hourly chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 19450 level it would witness buying which would lead the index towards 19550-19650 levels. Important Support for the day is around 19350 however if index sustains below 19350 then it may witness profit booking which would take the index towards 19300-19200 levels.. Nifty is trading above 50, 100 and 200 day SMA indicating positive bias in the medium term. Nifty continues to remain in a downtrend in the short term, so selling on rallies continues to be our preferred strategy.

The daily strength indicator RSI continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 19405. If NIFTY trades above this level then we may witness a further rally up to 19435-19470-19495 levels. However, if NIFTY trades below 19405 levels then we may see some profit booking initiating in the market, which may correct up to 19370-19345-19310 levels.

Bank Nifty

Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Banknifty closed at 43993 on 22nd August with a loss of 9 points.

On the daily chart the index has formed a bearish candle with either side shadows indicating lackluster movement throughout the session. The index continues to move in a lower top and lower bottom formation on the hourly chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 44150 level it would witness buying which would lead the index towards 44250-44400 levels. Important Support for the day is around 43850 however if index sustains below 43850 then it may witness profit booking which would take the index towards 43700-43600 levels.. Banknifty is sustaining above its 100 and 200- day SMA which signals bullish sentiments in near term. Banknifty continues to remain in a downtrend in the short term, so selling on rallies continues to be our preferred strategy.

The daily strength indicator RSI continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 44030. If BANK NIFTY trades above this level then we may witness a further rally up to 44115-44240-44330 levels. However, if BANK NIFTY trades below 44030 levels then we may see some profit booking initiating in the market, which may correct up to 43905-43815-43690 levels.

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