Nifty opened lower with a downward gap and reamined lackluster within a narrow - Axis Securities
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Nifty
Nifty opened lower with a downward gap and reamined lackluster within a narrow trading range throughout the session. Nifty closed at 17313 with a loss of 246 points
On the daily chart index has formed a bullish candle however continues to move in lower high-low formation indicating negative bias.The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 17400 level it would witness buying which would lead the index towards 17500-17600 levels. However if the index breaks below 17200 level it would witness selling which would take the index towards 17100-17000. Nifty is trading below 20 day SMA indicating negative 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 has turned negative from the overbought territory and is below its reference line indicating profit booking.
The trend deciding level for the day is 17285. If NIFTY trades above this level then we may witness a further rally up to 17405-17500-17620 levels. However, if NIFTY trades below 17285 levels then we may see some profit booking initiating in the market, which may correct up to 17195-17070-16980 levels.
Banknifty
Banknifty opened sharply lower with a downward gap and selling pressure throughout the session dragged it lower to close on a negative note. Banknifty closed at 38277 with a loss of 710 points.
On the daily chart index has formed a bullish candle however it continues to form lower High-Low compared to previous session indicating negative bias. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 38400 level it would witness buying which would lead the index towards 38600-38800 levels. However if index breaks below 38200 level it would witness selling which would take the index towards 38000-37800. Banknifty is trading below 20 day SMA's which indicates negative bias in the short term. Banknifty continues to remain in an uptrend in the short term, so buying on dips continues to be our preferred strategy.
The daily strength indicator RSI has turned negative from the overbought territory and is below its reference line indicating profit booking at higher levels.
The trend deciding level for the day is 38205. If BANK NIFTY trades above this level then we may witness a further rally up to 38470-38660-38920 levels. However, if BANK NIFTY trades below 38205 levels then we may see some profit booking initiating in the market, which may correct up to 38015-37755-37560 levels.
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