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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 closed on a positive note. Nifty closed at 18817 on 20th June with a gain of 61 points.

On the daily chart the index has formed a small 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 a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 18850 level it would witness buying which would lead the index towards 18900-19000 levels. Important Support for the day is around 18750 However if index sustains below 18700 then it may witness profit booking which would take the index towards 18700-18600 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 is gyrating around its reference line indicating extreme volatility in the index.

The trend deciding level for the day is 18770. If NIFTY trades above this level then we may witness a further rally up to 18885-18950-19065 levels. However, if NIFTY trades below 18770 levels then we may see some profit booking initiating in the market, which may correct up to 18705-18595-18525 level.

Banknifty

Banknifty opened lower with a downward gap and extended selling momentum in the first half however buying momentum pulled the index higher to close on a positive note. Banknifty closed at 43767 on 20th June with a gain of 133 points.

On the daily chart the index has formed a small 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 medium term up trend. The chart pattern suggests that if Nifty crosses and sustains above 43850 level it would witness buying which would lead the index towards 43900-44000 levels. Important Support for the day is around 43600 However if index sustains below 43650 then it may witness profit booking which would take the index towards 43550-43500 levels.. Banknifty is sustaining above its 50, 100 and 200- day SMA which signals bullish sentiments in near 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 below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 43645. If BANK NIFTY trades above this level then we may witness a further rally up to 43945-44125-44425 levels. However, if BANK NIFTY trades below 43645 levels then we may see some profit booking initiating in the market, which may correct up to 43465-43165-42990 levels.

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