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Nifty

Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Nifty closed at 19749 on 18th July with a gain of 38 points. On the daily chart the index has formed a small bearish candle with either side shadows indicating lackluster movement throughout the session. 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 19800 level it would witness buying which would lead the index towards 19900-20000 levels. Important Support for the day is around 19700 However if index sustains below 19700 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 is moving upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 19755. If NIFTY trades above this level then we may witness a further rally up to 19815-19880-19945 levels. However, if NIFTY trades below 19755 levels then we may see some profit booking initiating in the market, which may correct up to 19685-19625-19555 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 45411 on 18th July with a loss of 39 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. 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 45550 level it would witness buying which would lead the index towards 45650-45800 levels. Important Support for the day is around 45300 However if index sustains below 45300 then it may witness profit booking which would take the index towards 45200-45100 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 moving upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 45535. If BANK NIFTY trades above this level then we may witness a further rally up to 45785-46155-46410 levels. However, if BANK NIFTY trades below 45535 levels then we may see some profit booking initiating in the market, which may correct up to 45160-44910-44535 levels.

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