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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 19384 on 12th July with a loss of 55 points

On the daily chart the index has formed a "bearish engulfing" candle after facing major resistance near the 19500 level indicating profit booking at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend in the medium term. The chart pattern suggests that if Nifty crosses and sustains above 19450 level it would witness buying which would lead the index towards 19500-19600 levels. Important Support for the day is around 19300 However if index sustains below 19300 then it may witness profit booking which would take the index towards 19200-19100 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 has turned negative from the overbought territory and is below its reference line indicating profit booking.

The trend deciding level for the day is 19420. If NIFTY trades above this level then we may witness a further rally up to 19475-19565-19620 levels. However, if NIFTY trades below 19420 levels then we may see some profit booking initiating in the market, which may correct up to 19330-19270-19180 levels.

Banknifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a negative note. Banknifty closed at 44639 on 12th July with a loss of 106 points

On the daily chart, the index has formed a bearish candle forming lower High-Low compared to previous session and has also closed below previous session's low indicating further weakness. 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 44750 level it would witness buying which would lead the index towards 44900-45000 levels. Important Support for the day is around 44550 However if index sustains below 44550 then it may witness profit booking which would take the index towards 44500-44350 levels. Banknifty is sustaining above its 20, 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 is moving downwards and is quoting below its reference line indicating profit booking.

The trend deciding level for the day is 44715. If BANK NIFTY trades above this level then we may witness a further rally up to 44865-45090-45240 levels. However, if BANK NIFTY trades below 44715 levels then we may see some profit booking initiating in the market, which may correct up to 44490-44340-44115 levels. low 44715 levels then we may see some profit booking initiating in the market, which may correct up to 44490-44340-44115 levels.

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