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Nifty

Nifty opened on a flat note but selling led the index downwards to end in red. Nifty closed at 15748 with a loss of 66 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 15770. If NIFTY trades above this level then we may witnes s a further rally up to 15815-15880-15925 levels. However, if NIFTY trades below 15770 levels then we may see some profit booking initiating in the market, which may correct up to 15705-15660-15590 levels

Banknifty

Banknifty opened on a flat note but selling led the index downwards to end in red. Banknifty closed at 35010 with a loss of 349 points.

On the daily chart the index has formed a bearish candle after facing major resistance near the 35500 level.. Since past four-five sessions index continue to consolidate in a broad trading range (35800-34500) representing sideways trend. The chart pattern suggests that if Banknifty crosses and sustains above 35200 level it would witness buying which would lead the index towards 35600-36000 levels. Important Supports for the day is around 34800 However if index sustains below 34800 then it may witness profit booking which would take the index towards 34600-34200 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 35085. If BANK NIFTY trades above this level then we may witness a further rally up to 35260-35510-35685 levels. However, if BANK NIFTY trades below 35085 levels then we may see some profit booking initiating in the market, which may correct up to 34835-34665-34415 levels

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