Nifty opened on a positive note and extended buying momentum in the first half - Axis Securities
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Nifty
Nifty opened on a positive note and extended buying momentum in the first half however heavy selling in the second half led the index to close on a negative note. Nifty closed at 15693 with a gain of 3 points.
On the daily chart the index has formed a bearish candle but is currently trading at all time highs indicating that current price action might just be a pullback. Since past four-five sessions index continue to consolidate in a broad trading range (15600-15900) representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 15750 level it would witness buying which would lead the index towards 15800-15900 levels. However if index breaks below 15650 level it would witness selling which would take the index towards 15600-15500. 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 is moving downwards and is quoting below its reference line indicating negative bias.
The trend deciding level for the day is 15710. If NIFTY trades above this level then we may witness a further rally up to 15775-15855-15915 levels. However, if NIFTY trades below 15710 levels then we may see some profit booking initiating in the market, which may correct up to 15630-15565-15485 levels
Banknifty
Banknifty opened with an upward gap and formed shadows on either side indicating lack of bullish confidence amongst participants . Banknifty closed at 35199 with a gain of 127 points.
On the daily chart the index has formed a bearish candle with either side long shadows indicating extreme volatility at higher levels. 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 Banknifty crosses and sustains above 35500 level it would witness buying which would lead the index towards 36000-36500 levels. Important Supports for the day is around 35000 However if index sustains belwo 35000 then it may witness profit booking which would take the index towards 34500-34000 levels.. Banknifty is trading above its 20 day SMA which indicates positive 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 35220. If BANK NIFTY trades above this level then we may witness a further rally up to 35375-35550-35710 levels. However, if BANK NIFTY trades below 35220 levels then we may see some profit booking initiating in the market, which may correct up to 35040-34885-34705 levels
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