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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 17069 with a loss of 33 points.

On the daily chart index has formed a bullish candle and extended its couple of weeks consolidation indicating sideways trend. Since past 8-9 sessions indexes continue to consolidate in a broad trading range (17400-16800) representing a sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 17100 level it would witness buying which would lead the index towards 17200-17400 levels. However if index breaks below 17000 level it would witness selling which would take the index towards 16900-16800. Nifty is trading below 20 day SMA indicating negative bias in the short to medium term. Since the past five months Nifty continues to consolidate within 17400-16800 indicating a sideways trend and hence any either side breakout will signal direction.

The daily strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 17025. If NIFTY trades above this level then we may witness a further rally up to 17135-17200-17310 levels. However, if NIFTY trades below 17025 levels then we may see some profit booking initiating in the market, which may correct up to 16960-16850-16785 levels.

Banknifty

Banknifty opened with a downward gap however buying support at lower levels pulled the index to end on a positive note. Banknifty closed at 36164 with a gain of 76 points. On the daily chart index has formed a small bullish candle and remained consolidated within previous week's highlow range representing lackluster movement. Since the past couple of weeks, the index continues to consolidate in a broad trading range (37000-35500) representing a sideways trend. The chart pattern suggests that if Banknifty crosses and sustains above 36300 level it would witness buying which would lead the index towards 36600-37000 levels. However if the index breaks below 35800 level it would witness selling which would take the index towards 36600-36300. Banknifty is trading below 20 day SMA indicating negative bias in the short to medium term. Since the past couple of weeks, bank nifty continues to consolidate within 37000-35500 representing a sideways trend and hence any either side breakout will indicate further direction.

The daily and weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 36005. If BANK NIFTY trades above this level then we may witness a further rally up to 36395-36625-37010 levels. However, if BANK NIFTY trades below 36005 levels then we may see some profit booking initiating in the market, which may correct up to 35775-35390-35160 levels.

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