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Nifty

Nifty opened on a flat note but buying led the index upwards to end in the green. Nifty closed at 15854 with a gain of 42 points.

On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatality as well as indecisiveness amongst participants regarding the direction. Since past 4-6 weeks, index continues to consolidate in a broad trading range (15900-15400) representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 15880 level it would witness buying which would lead the index towards 16000-16050 levels. However if index breaks below 15750 level it would witness selling which would take the index towards 15700-15650. Nifty is trading above 20 and 50 day SMA's indicating positive bias in the short to medium term. Nifty 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 15830. If NIFTY trades above this level then we may witness a further rally up to 15900-15945-16015 levels. However, if NIFTY trades below 15830 levels then we may see some profit booking initiating in the market, which may correct up to 15785-15720-15675 levels.

Banknifty

Banknifty opened with a downward gap and extended buying momentum in the first half however profit booking in the later half dragged index lower to close in red. Banknifty closed at 35668 with a loss of 5 points.

On the daily chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. Since past 6-8 weeks index continue to consolidate in a broad trading range (35800-34700) representing sideways trend. The chart pattern suggests that if Banknifty crosses and sustains above 35800 level it would witness buying which would lead the index towards 36000-36500 levels. However if index breaks below 35500 level it would witness selling which would take the index towards 35300-35000. Banknifty is trading above 20 and 50 day SMA's indicating positive bias in the short to medium 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 35635. If BANK NIFTY trades above this level then we may witness a further rally up to 35835-36005-36205 levels. However, if BANK NIFTY trades below 35635 levels then we may see some profit booking initiating in the market, which may correct up to 35465- 35265-35100 levels.

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