IGI Logo

Nifty

Nifty opened on a flat note and witnessed selling for first part of the session. However last hour pullback action pulled index higher to close near the day's high. On 25th of May, Nifty closed at 18321 with a gain of 36 points.

On the daily chart the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. Since past 3-4 weeks index continue to consolidate in a broad trading range (18450-18000) representing sideways 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. However if index breaks below 18250 level it would witness selling which would take the index towards 18200-18100. Nifty is trading above its 20, 50 , 100 and 200 day SMA which indicates positive bias in the short 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 continue to remian flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 18285. If NIFTY trades above this level then we may witness a further rally up to 18370-18425-18510 levels. However, if NIFTY trades below 18285 levels then we may see some profit booking initiating in the market, which may correct up to 18235-18150-18100 levels.

Banknifty

Banknifty opened on a flat note and witnessed extreme volatality on eitherside for most part of the session. Banknifty closed at 43681 with a gain of 4 points.

On the daily chart the index has formed a Bullish candle with a lower shadow indicating buying at lower levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 43800 level it would witness buying which would lead the index towards 44000-44300 levels. However if index breaks below 43400 level it would witness selling which would take the index towards 43200-43000. Banknifty is trading above 20, 50 , 100 and 200 day SMA's indicating positive bias in the short to medium 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 43595. If BANK NIFTY trades above this level then we may witness a further rally up to 43805-43925-44135 levels. However, if BANK NIFTY trades below 43595 levels then we may see some profit booking initiating in the market, which may correct up to 43475-43270-43145 levels.

To Read Complete Report & Disclaimer Click Here

For More Axis Securities Disclaimer  https://simplehai.axisdirect.in/disclaimer-home

SEBI Registration number is INZ000161633

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime