Nifty continues to remain in an uptrend for the medium term, so buying on dips continues to be our preferred strategy - Axis Securities
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Nifty
Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 17872 with a gain of 150 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 17300 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 17900 level it would witness buying which would lead the index towards 18000-18100 levels. Important Supports for the day is around 17800 However if index sustains below 17800 then it may witness profit booking which would take the index towards 17700-17600 levels. Nifty is trading above longer term averages of 200 SMA indicating positive bias in 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 17840. If NIFTY trades above this level then we may witness a further rally up to 17930-17995-18085 levels. However, if NIFTY trades below 17840 levels then we may see some profit booking initiating in the market, which may correct up to 17780-17685-17625 levels.
Banknifty
Banknifty opened on a positive note and witness a extreme volatile on the either side throughout the day. Banknifty closed at 41538 with a gain of 47 points.
On the daily chart the index has formed a small Bearish candle with upper shadow indicating selling pressure as well as resistance at higher levels. The index is finding a resistance at 20 daily SMA placed at 41701 which is acting as a crucial resistance for a short term. The chart pattern suggests that if Nifty crosses and sustains above 41700 level it would witness buying which would lead the index towards 41800-42000 levels. Important Supports for the day is around 41400 however if index sustains below 41400 then it may witness profit booking which would take the index towards 41200-41000 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 continue to remain flat and is above its reference line indicating absence of momentum on either side
The trend deciding level for the day is 41580. If BANK NIFTY trades above this level then we may witness a further rally up to 41750-41965-42140 levels. However, if BANK NIFTY trades below 41580 levels then we may see some profit booking initiating in the market, which may correct up to 41365-41190-40975 levels.
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