Nifty opened lower with a downward gap and remained lackluster within a narrow trading range - Axis Securities
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Nifty
Nifty opened lower with a downward gap and remained lackluster within a narrow trading range, however last hour selling pushed index lower to close on negative note. Nifty closed at 18344 with a loss of 66 points.
On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure as well as resistance at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 18400 level it would witness buying which would lead the index towards 18500-18600 levels. Important Support for the day is around 18300 However if index sustains below 18300 then it may witness profit booking which would take the index towards 18200-18100 levels. Nifty is trading above 20, 50, 100 and 200 day SMA indicating positive 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 18360. If NIFTY trades above this level then we may witness a further rally up to 18405-18465-18510 levels. However, if NIFTY trades below 18360 levels then we may see some profit booking initiating in the market, which may correct up to 18300-18255-18195 levels
Banknifty
Banknifty opened on a flat note and remained in a small range throughout the day. Banknifty closed at 42458 with a loss of 77 points.
On the daily chart the index has formed a small Bullish candle with upper shadow indicating selling pressure as well as resistance at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 42600 level it would witness buying which would lead the index towards 42800-43000 levels. Important Support for the day is around 42350 However if index sustains below 42350 then it may witness profit booking which would take the index towards 42200-42000 levels.. Banknifty is sustaining above its 20, 50, 100 and 200- day SMA which signals bullish sentiments in near 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 continues to remain flat and is above its reference line indicating absence of momentum on either side
The trend deciding level for the day is 42480. If BANK NIFTY trades above this level then we may witness a further rally up to 42600-42740-42855 levels. However, if BANK NIFTY trades below 42480 levels then we may see some profit booking initiating in the market, which may correct up to 42340-42225-42085 levels
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