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Nifty

Nifty opened on a flat note 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. Nifty closed at 17757 with a loss of 181 points.

On the daily chart the index has formed a sizable bearish candle and has closed below previous session's low indicating negative bias.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 17800 level it would witness buying which would lead the index towards 17900-18000 levels. However if the index breaks below 17700 level it would witness selling which would take the index towards 17600-17500. Nifty is trading above its 20 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 has turned negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 17785. If NIFTY trades above this level then we may witness a further rally up to 17920-18080-18215 levels. However, if NIFTY trades below 17785 levels then we may see some profit booking initiating in the market, which may correct up to 17620-17490-17325 levels.

Banknifty

Banknifty opened on a flat note 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 37851 with a loss of 191 points.

On the daily chart the index has formed a Bearish 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 a short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 38000 levels it would witness buying which would lead the index towards 38200-38500 levels. However if the index breaks below 37800 level it would witness selling which would take the index towards 37600-37300. Banknifty is trading above 20 and 50 day SMA indicating positive bias in the short to medium term. Banknifty continues to remain in an uptrend in the long term, so accumulation on dips and near major support zones continues to be our preferred strategy.

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 37870. If BANK NIFTY trades above this level then we may witness a further rally up to 38150-38445-38725 levels. However, if BANK NIFTY trades below 37870 levels then we may see some profit booking initiating in the market, which may correct up to 37570-37295-36995 levels.

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