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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 15722 with a loss of 27 points.

On the daily chart the index has formed a bearish candle but is currently trading at all time highs indicating that current price action might just be a pullback.. Since past four-five sessions index continue to consolidate in a broad trading range (15600-15900) representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 15800 level it would witness buying which would lead the index towards 16000-16100 levels. However if index breaks below 15700 level it would witness selling which would take the index towards 15600-15500. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 turned negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 15755. If NIFTY trades above this level then we may witness a further rally up to 15805-15885-15935 levels. However, if NIFTY trades below 15755 levels then we may see some profit booking initiating in the market, which may correct up to 15675-15625-15545 levels

Banknifty

Banknifty opened on a flat note but selling led the index downwards to end in red. Banknifty closed at 34772 with a loss of 238 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 Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 35000 level it would witness buying which would lead the index towards 35600-36000 levels. Important Supports for the day is around 34500 However if index sustains belwo 34500 then it may witness profit booking which would take the index towards 34000-33700 levels.. 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 turned negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 34905. If BANK NIFTY trades above this level then we may witness a further rally up to 35080-35390-35565 levels. However, if BANK NIFTY trades below 34905 levels then we may see some profit booking initiating in the market, which may correct up to 34595-34420-34110 levels

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