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Nifty

Nifty opened with an upward gap and witnessed selling for the first part of the session. However, last hour pullback action pulled the index higher to close on a positive note. Nifty closed at 17398 with a gain of 38 points. On the daily chart the index has formed a small bearish candle with a lower shadow indicating buying at lower levels. Index is trading in a falling channel, 16850-16700 is a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. On the other hand, the upper band of the falling channel which is placed at 17700 will act as crucial resistance. The chart pattern suggests that if Nifty crosses and sustains above 17500 level it would witness buying which would lead the index towards 17600-17700 levels. Important Support for the day is around 17300 However if index sustains below 17300 then it may witness profit booking which would take the index towards 17200-17100 levels.. Nifty is trading below its 50, 100, and 200-day SMA which indicates negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI has turned positive from the oversold territory and is above its reference line indicating pullback in the short term. . The trend deciding level for the day is 17380. If NIFTY trades above this level then we may witness a further rally up to 17445-17495-17560 levels. However, if NIFTY trades below 17380 levels then we may see some profit booking initiating in the market, which may correct up to 17330-17265-17215 levels.

Banknifty

Banknifty opened with an upward gap and witnessed extreme volatility on either side throughout the day. Banknifty closed at 40813 with a gain of 204 points. On the daily chart index has formed a small bullish candle and has closed above its previous session's high representing positive bias ahead. The index is approaching a bearish gap area between 41208 and 40840 levels which may act as crucial resistance. The chart pattern suggests that if Nifty crosses and sustains above 41000 level it would witness buying which would lead the index towards 41200-41300 levels. Important Support for the day is around 40700 However if index sustains below 40700 then it may witness profit booking which would take the index towards 40500-40400 levels. Banknifty is trading below 50 and 100 day SMA indicating negative bias in the short to medium term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI is moving upwards and is above its reference line indicating pullback action. The trend deciding level for the day is 40735. If BANK NIFTY trades above this level then we may witness a further rally up to 40935-41055-41255 levels. However, if BANK NIFTY trades below 40735 levels then we may see some profit booking initiating in the market, which may correct up to 40615-40415-40290 levels.

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