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Nifty

Nifty opened with a downward gap and traded with extreme volatility on either side and gained bullish momentum at the end of the day. Nifty closed at 18191 with a gain of 69 points.

On the daily chart index has formed a bullish candle which engulfed previous two sessions representing positive bias ahead. The index is holding above the bullish gap area of 17800 level however 18200 is crucial to watch out for on a closing basis for positive momentum to continue. The chart pattern suggests that if Nifty crosses and sustains above 18300 level it would witness buying which would lead the index towards 18400-18500 levels. Important Support for the day is around 18100 However if index sustains below 18100 then it may witness profit booking which would take the index towards 18000-17900 levels.. Nifty is trading above longer term averages of 100 & 200 SMA indicating positive bias in the medium term.. Nifty continues to remain in an uptrend for the medium term, so buying on dips continues to be our preferred strategy.

The daily strength indicator RSI has turned positive and is above cross above its reference line indicating positive bias

The trend deciding level for the day is 18140. If NIFTY trades above this level then we may witness a further rally up to 18285-18375-18520 levels. However, if NIFTY trades below 18140 levels then we may see some profit booking initiating in the market, which may correct up to 18045-17900-17810 levels.

Bank Nifty

Banknifty opened with a downward gap however buying support at lower levels pulled the index to end on a positive note. Banknifty closed at 43252 with a gain of 425 points.

On the daily chart index has formed a bullish candle which engulf previous session representing positive bias ahead. . The index continues to move in a Higher Top and Bottom formation on the hourly chart indicating positive bias in the short term. The chart pattern suggests that if Nifty crosses and sustains above 43400 level it would witness buying which would lead the index towards 43600-43800 levels. Important Support for the day is around 43100 However if index sustains below 43100 then it may witness profit booking which would take the index towards 42900-42700 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 has turned positive from oversold and is above its reference line indicating positive bais.

The trend deciding level for the day is 43080. If BANK NIFTY trades above this level then we may witness a further rally up to 43670-44090-44680 levels. However, if BANK NIFTY trades below 43080 levels then we may see some profit booking initiating in the market, which may correct up to 42660-42070-41655 levels

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