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Nifty

Nifty opened on a positive note and traded with extreme volatility throughout the session. Nifty closed at 18857 on 21st June with a gain of 40 points. On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 18900 level it would witness buying which would lead the index towards 19000- 19100 levels. Important Support for the day is around 18800 However if index sustains below 18800 then it may witness profit booking which would take the index towards 18700-18600 levels. Nifty is trading above 20, 50, 100 and 200 day SMA indicating positive bias in the short to medium term. Nifty continues to remain in an uptrend for the short term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI is gyrating around its reference line indicating extreme volatility in the index. The trend deciding level for the day is 18845. If NIFTY trades above this level then we may witness a further rally up to 18890-18925-18970 levels. However, if NIFTY trades below 18845 levels then we may see some profit booking initiating in the market, which may correct up to 18810-18760-18730 levels.

Bank Nifty

Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Banknifty closed at 43859 on 21st June with a gain of 93 points. On the daily chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Bank Nifty crosses and sustains above 44000 level it would witness buying which would lead the index towards 44100-44200 levels. Important Supports for the day is around 43700 However if index sustains below 43700 then it may witness profit booking which would take the index towards 43600-43600 levels. Banknifty is sustaining above its 20, 50, 100 and 200- day SMA which signals bullish sentiments in near 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 continues to remain flat and is below its reference line indicating absence of momentum on either side The trend deciding level for the day is 43835. If BANK NIFTY trades above this level then we may witness a further rally up to 43970-44085-44220 levels. However, if BANK NIFTY trades below 43835 levels then we may see some profit booking initiating in the market, which may correct up to 43725-43585-43475 levels.

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