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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 15880 with a gain of 61 points.

On the daily chart the index has formed a Bullish candle with a lower shadow indicating buying at lower levels. Since past four-five sessions index continue to consolidate in a broad trading range (15900-15600) representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 15900 level it would witness buying which would lead the index towards 16000-16100 levels. However if index breaks below 15800 level it would witness selling which would take the index towards 15750-15700. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 15850. If NIFTY trades above this level then we may witness a further rally up to 15920-15965-16035 levels. However, if NIFTY trades below 15850 levels then we may see some profit booking initiating in the market, which may correct up to 15810-15735-15695 levels.

Banknifty

Bank nifty opened on a flat note and remained in a small range throughout the day. Bank nifty closed at 35771 with a gain of 192 points.

On the daily chart index has formed a bullish candle however it remained restricted within previous session's High-Low range indicating absence of strength on either side. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Bank nifty crosses and sustains above 35800 level it would witness buying which would lead the index towards 36000-36300 levels. However if index breaks below 35600 level it would witness selling which would take the index towards 35500-35400. Bank nifty 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 35665. If BANK NIFTY trades above this level then we may witness a further rally up to 35900-36035-36270 levels. However, if BANK NIFTY trades below 35665 levels then we may see some profit booking initiating in the market, which may correct up to 35535- 35295-35165 levels.

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