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 flat note - 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 flat note. Nifty closed at 16635 with a gain of 10 points.
On the daily chart the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance 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 Nifty crosses and sustains above 16700 level it would witness buying which would lead the index towards 16750 -16900 levels. However if index breaks below 16600 level it would witness selling which would take the index towards 16500-16400. Nifty is trading above 20 and 50 day SMA's indicating positive 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 upwards and is above its reference line indicating positive bias.
The trend deciding level for the day is 16655. If NIFTY trades above this level then we may witness a further rally up to 16690-16750-16785 levels. However, if NIFTY trades below 16655 levels then we may see some profit booking initiating in the market, which may correct up to 16595-16560-16500 levels
Banknifty
Banknifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Banknifty closed at 35586 with a loss of 126 points.
On the daily chart the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance 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 35800 level it would witness buying which would lead the index towards 36200-36600 levels. Important Supports for the day is around 35200 However if index sustains belwo 35200 then it may witness profit booking which would take the index towards 34800-34500 levels.. Banknifty 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 downwards and is quoting below its reference line indicating negative 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 35830-36075-36240 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 35420-35255-35010 levels
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