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Nifty

Nifty opened on a flat note and witnessed extreme volatility on either side for most part of the session. Nifty closed at 17893 with a gain of 22 points.

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. The index is holding above a lower band of falling channel from the all-time high of 18887 which also confluences with 200 SMA placed at 17300 level and a gap area around 17328-17434. On the higher side, 18000 will act as the crucial resistance level to watch out which is the upper band of the falling channel. The chart pattern suggests that if Nifty crosses and sustains above 18000 level it would witness buying which would lead the index towards 18100-18200 levels. Important Support for the day is around 17800 However if index sustains below 17800 then it may witness profit booking which would take the index towards 17700-17600 levels. Nifty is trading above longer term averages of 200 SMA indicating positive bias in the medium term.. Nifty continues to remain in an uptrend for the medium 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 17865. If NIFTY trades above this level then we may witness a further rally up to 17945-18000-18085 levels. However, if NIFTY trades below 17865 levels then we may see some profit booking initiating in the market, which may correct up to 17810-17725-17675 levels.

Banknifty

Banknifty opened with an upward gap and witnessed selling for the first part of the session. However, last hour pullback action pulled the index higher and recovered some of the earlier losses. Banknifty closed at 41554 with a gain of 17 points.

On the daily chart the index has formed a Bearish candle with a lower shadow indicating buying at lower levels. The index is finding a resistance at 20 daily SMA placed at 41669 which is acting as a crucial resistance for a short term. The chart pattern suggests that if Nifty crosses and sustains above 41700 level it would witness buying which would lead the index towards 41800-42000 levels. Important Support for the day is around 41400 However if index sustains below 41400 then it may witness profit booking which would take the index towards 41200-41000 levels.. Banknifty is trading above its 200 day SMA which indicates positive bias in the 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 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 41480. If BANK NIFTY trades above this level then we may witness a further rally up to 41710-41860-42090 levels. However, if BANK NIFTY trades below 41480 levels then we may see some profit booking initiating in the market, which may correct up to 41325-41100-40945 levels.

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