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NIFTY

Nifty opened on a positive note and extended buying momentum in the first half however we witnessed profit booking in the later half of the day. Nifty closed at 14919 with a gain of 158 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 Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Nifty breaks and sustains below 14900 level it would witness selling which would lead the index towards 14800-14700 levels. Important Resistances for the day are placed at 15100-15300. 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 has bounced from the 50 mark indicating change of momentum on the positive side.

The trend deciding level for the day is 14880. If NIFTY trades above this level then we may witness a further rally up to 15000-15080-15195 levels. However, if NIFTY trades below 14880 levels then we may see some profit booking initiating in the market, which may correct up to 14800-14680-14600 levels.

BANKNIFTY

Banknifty opened with an upward gap and remained lacklustre within narrow trading range throughout the day. Banknifty closed at 35420 with a gain of 124 points.

On the daily chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market 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 Banknifty crosses and sustains above 35600 level it would witness buying which would lead the index towards 37000-37500 levels. However if index breaks below 35300 level it would witness selling which would take the index towards 35000-34800. 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 has bounced from the 50 mark indicating change of momentum on the positive side.

The trend deciding level for the day is 35390. If BANK NIFTY trades above this level then we may witness a further rally up to 35775-36135-36520 levels. However, if BANK NIFTY trades below 35390 levels then we may see some profit booking initiating in the market, which may correct up to 35030-34645-34290 levels.

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