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Nifty

Nifty opened on a positive note and extended buying momentum in the first half however we witnessed profit booking in the later-half of the day.Nifty closed at 17076 with a loss of 56 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. 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 17150 level it would witness buying which would lead the index towards 17200-17300 levels. However if index breaks below 17050 level it would witness selling which would take the index towards 17000-16950. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 17120. If NIFTY trades above this level then we may witness a further rally up to 17185-17290-17355 levels. However, if NIFTY trades below 17120 levels then we may see some profit booking initiating in the market, which may correct up to 17010-16950-16840 levels

Banknifty

Banknifty opened on a positive note and extended buying momentum in the first half however profit booking in the second half erased most of the earlier gains which led the index to close on a flat note. Banknifty closed at 36574 with a gain of 150 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 36700 level it would witness buying which would lead the index towards 36900-37100 levels. However if index breaks below 36400 level it would witness selling which would take the index towards 36200-36000. 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 upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 36685. If BANK NIFTY trades above this level then we may witness a further rally up to 36885-37195-37395 levels. However, if BANK NIFTY trades below 36685 levels then we may see some profit booking initiating in the market, which may correct up to 36375- 36175-35865 levels.

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