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Nifty

Nifty opened on a flat note but selling led the index downwards to end in red. Nifty closed at 14325 with a loss of 225 points. On the daily chart the index has formed a big bearish candle and has violated multiple day support of 14500 indicating negative bias. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias.

The chart pattern suggests that if Nifty breaks and sustains below 14300 level it would witness selling which would lead the index towards 14100-14000 levels. Important Resistances for the day are placed at 14700-14900. Nifty is trading below 20 day SMA indicating negative 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 has turned negative from the overbought territory and is below its reference line indicating sustained downtrend. The trend deciding level for the day is 14390. If NIFTY trades above this level then we may witness a further rally up to 14510-14700-14825 levels.

However, if NIFTY trades below 14390 levels then we may see some profit booking initiating in the market, which may correct up to 14200-14075-13890 levels

Banknifty

Banknifty opened with an upward gap and witnessed selling for first part of the session. However last hour pullback action pulled index higher and recovered some of the earlier losses..

Banknifty closed at 33006 with a loss of 287 points. On the daily chart the index has formed a Bearish candle with a lower shadow indicating buying at lower levels. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias.

The chart pattern suggests that if Banknifty breaks and sustains below 32800 level it would witness selling which would lead the index towards 32500-32100 levels. However if index crosses above 33300 level it would witness pullback rally which would take the index towards 33700-34000.

Banknifty is trading below 20 day SMA indicating negative 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 downwards and is quoting below its reference line indicating negative bias.

The trend deciding level for the day is 32990. If BANK NIFTY trades above this level then we may witness a further rally up to 33565-34125-34700 levels. However, if BANK NIFTY trades below 32990 levels then we may see some profit booking initiating in the market, which may correct up to 32430-31855-31295 levels

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