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Nifty

Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 17930 with a gain of 159 points. On the daily chart index has formed a bullish candle and has closed above its previous session's high representing positive bias ahead. The index is holding above a lower band of falling channel from the all-time high of 18887 which also confluences with 200 SMA placed at 17317 level and a gap area around 17328-17434. On the higher side, 18000 will act as the crucial resistance level to watch out which is the upper band of the falling channel. The chart pattern suggests that if Nifty crosses and sustains above 18000 level it would witness buying which would lead the index towards 18100-18200 levels. Important Support for the day is around 17900 However if index sustains below 17900 then it may witness profit booking which would take the index towards 17800-17700 levels.. Nifty is trading above longer term averages of 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 is moving upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 17895. If NIFTY trades above this level then we may witness a further rally up to 17990-18050-18145 levels. However, if NIFTY trades below 17895 levels then we may see some profit booking initiating in the market, which may correct up to 17835-17740-17680 levels.

Banknifty

Banknifty opened with an upward gap and formed shadows on either side indicating lack of bullish confidence amongst participants . Banknifty closed at 41648 with a gain of 366 points. On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index continues to consolidate between 41800-41200 zones. The chart pattern suggests that if Nifty crosses and sustains above 41750 level it would witness buying which would lead the index towards 41900-42000 levels. Important Support for the day is around 41500 However if index sustains below 41500 then it may witness profit booking which would take the index towards 41400-41200 levels.. Banknifty is trading above its 200 day SMA which indicates positive bias in the medium 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 41520. If BANK NIFTY trades above this level then we may witness a further rally up to 41845-42045-42370 levels. However, if BANK NIFTY trades below 41520 levels then we may see some profit booking initiating in the market, which may correct up to 41325-41000-40800 levels.

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