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Nifty

Nifty opened on a flat note and witnessed selling pressure in the initial hour however buying momentum at lower levels pulled index higher to close near the day's high. Nifty closed at 19633 on 09th August with a gain of 62 points. On the daily chart the index has formed a bullish candle with a long lower shadow indicating buying at lower levels. It exhibits a minor descending channel pattern, encountering resistance at its 20-day simple moving average; a sustained breach above this level is likely to perpetuate the prevailing uptrend. The index continues to move in a lower top and lower bottom formation on the hourly chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 19650 level it would witness buying which would lead the index towards 19700-19800 levels. Important Supports for the day is around 19600 however if index sustains below 19600 then it may witness profit booking which would take the index towards 19500-19400 levels. Nifty is trading above 50, 100 and 200 day sma's 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 RSI is on the brink of crossing above its reference line, poised to signal a 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 19695-19760-19875 levels. However, if NIFTY trades below 19580 levels then we may see some profit booking initiating in the market, which may correct up to 19520-19405-19340 levels.

Bank Nifty

Banknifty opened on a flat note and witnessed selling in the initial hour of the session. However, buying momentum at lower levels pulled the index higher to recover some of the earlier losses. Banknifty closed at 44881 on 09th August with a loss of 84 points. On the daily chart the index has formed a bearish candle with a lower shadow indicating buying at lower levels. The index continues to move in a lower top and lower bottom formation on the hourly chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 45000 level it would witness buying which would lead the index towards 45150-45350 levels. Important Support for the day is around 44750 however if index sustains below 44750 then it may witness profit booking which would take the index towards 44650-44550 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 44795. If BANK NIFTY trades above this level then we may witness a further rally up to 45060-45240-45500 levels. However, if BANK NIFTY trades below 44795 levels then we may see some profit booking initiating in the market, which may correct up to 44620-44355-44175 levels.

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