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Nifty

Nifty began the day with a flat opening but gained momentum with buying activity during the first half. However, in the latter half of the session, it faced selling pressure at higher levels. Despite this, Nifty managed to close the day with a positive note. Nifty closed at 19394 on 21st August with a gain of 83 points.

The daily chart reveals the formation of a bullish candle with higher high-low compared to the previous session. Additionally, the index has crossed above the 50-day Simple Moving Average (SMA), signifying a positive bias. The index continues to move in a lower top and lower bottom formation on the hourly chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 19450 level it would witness buying which would lead the index towards 19550-19650 levels. Important Support for the day is around 19350 however if index sustains below 19350 then it may witness profit booking which would take the index towards 19250-19150 levels. Nifty is trading above 50, 100 and 200 day SMA indicating positive bias in the medium term. Nifty continues to remain in a downtrend in the short term, so selling on rallies continues to be our preferred strategy.

The daily RSI is on the brink of crossing above its reference line, and if it surpasses this threshold, it is poised to herald a shift towards a positive bias.

The trend deciding level for the day is 19370. If NIFTY trades above this level then we may witness a further rally up to 19450-19500-19575 levels. However, if NIFTY trades below 19370 levels then we may see some profit booking initiating in the market, which may correct up to 19320-19240-19190 levels.

Bank Nifty

Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Banknifty closed at 44002 on 21st August with a gain of 151 points.

On the daily chart the index has formed a small bullish candle with shadows on either side indecisiveness amongst participants regarding the direction. The index continues to move in a lower top and lower bottom formation on the hourly chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 44150 level it would witness buying which would lead the index towards 44250-44400 levels. Important supports for the day are around 43850 however if index sustains below 43850 then it may witness profit booking which would take the index towards 43700-43600 levels. Banknifty is sustaining above its 100 and 200- day SMA which signals bullish sentiments in near term. Banknifty continues to remain in a downtrend in the short term, so selling on rallies continues to be our preferred strategy.

The daily RSI is on the brink of crossing above its reference line, and if it surpasses this threshold, it is poised to herald a shift towards a positive bias.

The trend deciding level for the day is 43995. If BANK NIFTY trades above this level then we may witness a further rally up to 44125-44245-44375 levels. However, if BANK NIFTY trades below 43995 levels then we may see some profit booking initiating in the market, which may correct up to 43870-43740-43620 levels

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