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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 18267 with a gain of 23 points.

On the daily chart the index has formed a small Bearish candle however it forms a higher High-Low compared to previous session indicating positive bias. 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 18300 level it would witness buying which would lead the index towards 18400-18500 levels. Important Support for the day is around 18200 However if index sustains below 18200 then it may witness profit booking which would take the index towards 18100-18000 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 continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 18215. If NIFTY trades above this level then we may witness a further rally up to 18290-18340-18415 levels. However, if NIFTY trades below 18215 levels then we may see some profit booking initiating in the market, which may correct up to 18165-18090-18045 levels

Banknifty

Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Banknifty closed at 42729 with a gain of 272 points.

On the daily chart the index has formed a Doji candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. 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 Banknifty crosses and sustains above 42900 level it would witness buying which would lead the index towards 43200-43400 levels. Important Support for the day is around 42600 However if index sustains below 42600 then it may witness profit booking which would take the index towards 42400-42200 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 42440. If BANK NIFTY trades above this level then we may witness a further rally up to 42530-42600-42690 levels. However, if BANK NIFTY trades below 42440 levels then we may see some profit booking initiating in the market, which may correct up to 42365-42275-42205 levels

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