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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 18109 with a gain of 7 points.

On the daily chart the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance at higher 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 crosses and sustains above 18150 level it would witness buying which would lead the index towards 18200-18300 levels. However if index breaks below 18050 level it would witness selling which would take the index towards 18000-17950. Nifty is trading above 20 and 50 day SMA's indicating positive 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 18130. If NIFTY trades above this level then we may witness a further rally up to 18190-18270-18330 levels. However, if NIFTY trades below 18130 levels then we may see some profit booking initiating in the market, which may correct up to 18050-17990-17910 levels.

Banknifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Banknifty closed at 38702 with a loss of 31 points.

On the daily chart the index has formed a bearish candle with upper shadow indicating selling pressure as well as resistance at higher levels. 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 Banknifty crosses and sustains above 38800 level it would witness buying which would lead the index towards 39100-39300 levels. However if index breaks below 38600 level it would witness selling which would take the index towards 38400-38300. Banknifty is trading below its 20 day SMA which indicates negative bias in the short term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies 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 38810. If BANK NIFTY trades above this level then we may witness a further rally up to 39010-39320-39520 levels. However, if BANK NIFTY trades below 38810 levels then we may see some profit booking initiating in the market, which may correct up to 38500-38300-37990 levels.

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