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Nifty

Nifty opened on a flat note and remained in a small range throughout the day. Nifty closed at 16637 with a gain of 2 points.

On the daily chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 16700 level it would witness buying which would lead the index towards 16800-16900 levels. However if index breaks below 16600 level it would witness selling which would take the index towards 16550-16500. Nifty is trading above its 20 day SMA which indicates positive bias in the short term. Nifty 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 is moving upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 16640. If NIFTY trades above this level then we may witness a further rally up to 16680-16720-16760 levels. However, if NIFTY trades below 16640 levels then we may see some profit booking initiating in the market, which may correct up to 16600-16560-16520 levels.

Banknifty

Banknifty opened on a flat note and witnessed extreme volatility on either side for most part of the session. Banknifty closed at 35618 on a flat note.

On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. Since past four weeks index continue to consolidate in a broad trading range (36300-34600) representing sideways trend. The chart pattern suggests that if Banknifty crosses and sustains above 35800 level it would witness buying which would lead the index towards 36000-36200 levels. However if index breaks below 35400 level it would witness selling which would take the index towards 35200-35000. Banknifty is trading above 20 and 50 day SMA's indicating positive bias in the short to 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 has turned negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 35605. If BANK NIFTY trades above this level then we may witness a further rally up to 35800-35980-36170 levels. However, if BANK NIFTY trades below 35605 levels then we may see some profit booking initiating in the market, which may correct up to 35425- 35230-35050 levels.

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