Nifty opened on a flat note and witnessed selling for the first part of the session - Axis Securities
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 closed near day’s high. Nifty closed at 19611 on 06th September with a gain of 36 points.
On the daily chart the index has formed a small bullish candle with a long lower shadow indicating buying at lower levels. The index has breached above the descending channel at 19,500, and sustained trading above this level suggests potential for an upward trend continuation. The chart pattern suggests that if Nifty crosses and sustains above 19700 level it would witness buying which would lead the index towards 19750-19800 levels. Important support for the day is around 19550 however if index sustains below 19550 then it may witness profit booking which would take the index towards 19500-19400 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 positive from the oversold territory and is above its reference line indicating positive bias
The trend deciding level for the day is 19580. If NIFTY trades above this level then we may witness a further rally up to 19670-19725-19815 levels. However, if NIFTY trades below 19580 levels then we may see some profit booking initiating in the market, which may correct up to 19525-19435-19380 levels.
Bank Nifty
Banknifty opened with a downward gap and traded with extreme volatility on either side. Banknifty closed at 44409 on 06th September with a loss of 123 points.
On the daily chart the index has formed a small bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. The index is currently consolidating within a symmetrical triangular pattern, and a close above 44,800 may signal a breakout towards higher levels. The chart pattern suggests that if Nifty crosses and sustains above 44650 level it would witness buying which would lead the index towards 44700-44800 levels. Important Supports for the day is around 44300 However if index sustains below 44300 then it may witness profit booking which would take the index towards 44200-44000 levels. Banknifty is sustaining above its 20,100 and 200 day SMA which signals bullish sentiments in near term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy.
The daily strength indicator RSI continue to remian flat and is above its reference line indicating absence of momentum on either side.
The trend deciding level for the day is 44400. If BANK NIFTY trades above this level then we may witness a further rally up to 44590-44770-44960 levels. However, if BANK NIFTY trades below 44400 levels then we may see some profit booking initiating in the market, which may correct up to 44220-44030-43850 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 Disclaimer
