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Nifty

Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. On 12th June, Nifty closed at 18602 with a gain of 38 points

On the daily chart index has formed a bullish candle however it remained restricted within previous session's HighLow range indicating absence of strength on either side. The index continues to move in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias in a medium term. The chart pattern suggests that if Nifty crosses and sustains above 18650 level it would witness buying which would lead the index towards 18700-18800 levels. Important Support for the day is around 18550 However if index sustains below 18550 then it may witness profit booking which would take the index towards 18500-18400 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 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 18600. If NIFTY trades above this level then we may witness a further rally up to 18635-18670-18710 levels. However, if NIFTY trades below 18600 levels then we may see some profit booking initiating in the market, which may correct up to 18565-18525-18490 levels.

Banknifty

Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. On 12th June, Banknifty closed at 43944 with a loss of 45 points.

On the daily chart the index has formed a small bearish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a medium term up trend. The chart pattern suggests that if Nifty crosses and sustains above 44050 level it would witness buying which would lead the index towards 44150-44300 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 43750-43600 levels. Banknifty is sustaining above its 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 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 43980. If BANK NIFTY trades above this level then we may witness a further rally up to 44090-44230-44340 levels. However, if BANK NIFTY trades below 43980 levels then we may see some profit booking initiating in the market, which may correct up to 43835-43730-43585 levels.

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