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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 16887 with a loss of 207 points.

On the daily chart, the index has formed a sizable bearish candle and closed below 200DMA indicating further weakness. 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 Nifty crosses and sustains above 17000 level it would witness buying which would lead the index towards 17100-17200 levels. Important support for the day is around 16800 However if index sustains below 16800 then it may witness profit booking which would take the index towards 16700-16600 levels. Nifty is trading below its 20, 50 and 200-day SMA which indicates negative bias in the short term. 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 negative bias in the short term.

The trend deciding level for the day is 16955. If NIFTY trades above this level then we may witness a further rally up to 17050-17210-17310 levels. However, if NIFTY trades below 16955 levels then we may see some profit booking initiating in the market, which may correct up to 16790-16695-16530 levels

Banknifty

Banknifty opened with a downward gap and selling pressure throughout the session led it to close near day's low. Banknifty closed at 38030 with a loss of 602 points.

On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure as well as resistance at higher 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 crosses and sustains above 38150 level it would witness buying which would lead the index towards 38300-38500 levels. Important support for the day is around 37800 However if index sustains below 37800 then it may witness profit booking which would take the index towards 37650-35500 levels.. Banknifty is trading below 20, 50 day SMA indicating negative bias in the short 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 38210. If BANK NIFTY trades above this level then we may witness a further rally up to 38460-38890-39140 levels. However, if BANK NIFTY trades below 38210 levels then we may see some profit booking initiating in the market, which may correct up to 37780- 37535-37105 levels.

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