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Nifty

Nifty opened on a flat note however profit booking for most part of the session led the index downwards to end in red. Nifty closed at 18199 with a loss of 186 points.

On the daily chart the index has formed a sizable bearish engulfing candle which engulfed previous session candle and has closed below previous session's low indicating profit booking. The index managed to close above the upward sloping trendline from 17750 which is in place from 30th Sep, 2022. Closing and sustaining above upper band of small falling channel above 18600 then rally may continue on the higher side. On the other hand if it closes below 18200 i.e. below upward sloping trendline then profit booking may continue. The chart pattern suggests that if Nifty crosses and sustains above 18300 level it would witness buying which would lead the index towards 18400-18500 levels. Important Support for the day is around 18100 However if index sustains below 18100 then it may witness profit booking which would take the index towards 18000-17900 levels. Nifty is trading above 50, 100 and 200 day SMA indicating positive bias in the medium term however it is trading below short term 20 day SMA indicating profit booking. Nifty continues to remain in an uptrend for the medium 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 profit booking in the short term.

The trend deciding level for the day is 18280. If NIFTY trades above this level then we may witness a further rally up to 18395-18590-18705 levels. However, if NIFTY trades below 18280 levels then we may see some profit booking initiating in the market, which may correct up to 18085-17970-17775 levels.

Banknifty

Banknifty opened with an upward gap but witnessed selling from an opening hour to close on a negative note. Banknifty closed at 42618 with a loss of 742 points.

On the daily chart the index has formed a "bearish engulfing" candle after facing resistance at higher levels. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating profit booking. The chart pattern suggests that if Nifty crosses and sustains above 42700 level it would witness buying which would lead the index towards 42900-43100 levels. Important Support for the day is around 42500 However if index sustains below 42500 then it may witness profit booking which would take the index towards 42300-42100 levels.. Banknifty is sustaining above its 50, 100 and 200 day SMA which signals bullish sentiments in the 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 profit booking.

The trend deciding level for the day is 42865. If BANK NIFTY trades above this level then we may witness a further rally up to 43365-44115-44620 levels. However, if BANK NIFTY trades below 42865 levels then we may see some profit booking initiating in the market, which may correct up to 42115-41615-40865 levels.

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