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Nifty

Nifty opened on a flat note and witnessed consolidation for the first part of the session. However, selling pressure in the last hour of trade dragged it lower to close near the day's low. Nifty closed at 19672 on 24th July with a loss of 73 points.

On the daily chart, the index has formed a bearish candle forming lower High-Low and has also closed below previous session low indicating further weakness. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 19700 level it would witness buying which would lead the index towards 19800-19900 levels. Important Support for the day is around 19650 However if index sustains below 19650 then it may witness profit booking which would take the index towards 19600-19500 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 19705. If NIFTY trades above this level then we may witness a further rally up to 19750-19830-19875 levels. However, if NIFTY trades below 19705 levels then we may see some profit booking initiating in the market, which may correct up to 19625-19580-19500 levels.

Bank Nifty

Banknifty 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. Banknifty closed at 45923 on 24th July with a loss of 152 points.

On the daily chart index has formed a bearish candle however it remained restricted within previous session's High-Low range indicating absence of strength on either side. 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 Nifty crosses and sustains above 46000 level it would witness buying which would lead the index towards 46150-46300 levels. Important Support for the day is around 45850 However if index sustains below 45850 then it may witness profit booking which would take the index towards 45750-45650 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 at a verge of crossover below its reference line. Sustaining below its reference line will turn bias negative.

The trend deciding level for the day is 45990. If BANK NIFTY trades above this level then we may witness a further rally up to 46125-46325-46455 levels. However, if BANK NIFTY trades below 45990 levels then we may see some profit booking initiating in the market, which may correct up to 45790-45660-45460 levels.

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