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Nifty

Nifty opened with an upward gap but witnessed profit booking from the opening tick which erased most of the earlier gains. Nifty closed at 17659 with a gain of 124 points.

On the daily chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst participants at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained uptrend. The chart pattern suggests that if Nifty crosses and sustains above 17750 level it would witness buying which would lead the index towards 17800-17900 levels. However if the index breaks below 17600 level it would witness selling which would take the index towards 17500-17400. Nifty is trading above its 50, 100 and 200 day SMA which indicates positive bias in the short 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 17670. If NIFTY trades above this level then we may witness a further rally up to 17710-17755-17795 levels. However, if NIFTY trades below 17670 levels then we may see some profit booking initiating in the market, which may correct up to 17620-17585-17535 levels.

Banknifty

Banknifty opened with an upward gap and remained in positive terrain throughout the day. Banknifty closed at 38880 with a gain of 592 points.

On the daily chart index has formed a bullish candle and has closed above its previous session's high representing positive bias ahead. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 39000 levels it would witness buying which would lead the index towards 39300-39500 levels. However if the index breaks below 38700 level it would witness selling which would take the index towards 38500-38300. Banknifty is trading above 20, 50, 100 and 200 day SMA indicating positive bias in the short to medium term. Banknifty continues to remain in an uptrend in the short 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 38820. If BANK NIFTY trades above this level then we may witness a further rally up to 38990-39105-39275 levels. However, if BANK NIFTY trades below 38820 levels then we may see some profit booking initiating in the market, which may correct up to 38710-38535-38425 levels.

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