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Nifty

Nifty opened on a positive note and traded with extreme volatility throughout the session.. Nifty closed at 17124 with a gain of 140 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 Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 17200 level it would witness buying which would lead the index towards 17300-17400 levels. Important support for the day is around 17100 However if index sustains below 17100 then it may witness profit booking which would take the index towards 17000-16900 levels. Nifty is trading above 100 and 200 day SMA indicating positive bias in the medium 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 at a verge of crossover above its reference line. Sustaining above its reference line will turn bias positive.

The trend deciding level for the day is 17075. If NIFTY trades above this level then we may witness a further rally up to 17190-17260-17375 levels. However, if NIFTY trades below 17075 levels then we may see some profit booking initiating in the market, which may correct up to 17010-16895-16825 levels

Banknifty

Banknifty opened with an upward gap and remained in positive terrain throughout the day. Banknifty closed at 39119 with a gain of 406 points. .

On the daily chart index has formed a bullish candle and has closed near its previous session's low representing an attempt by bulls to come back. 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 39300 level it would witness buying which would lead the index towards 39500-39700 levels. Important support for the day is around 39000 However if index sustains below 39000 then it may witness profit booking which would take the index towards 38800-38600 levels.. Banknifty is sustaining above its 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 has turned positive from oversold and is above its reference line indicating sustained strength

The trend deciding level for the day is 38965. If BANK NIFTY trades above this level then we may witness a further rally up to 39320-39520-39875 levels. However, if BANK NIFTY trades below 38965 levels then we may see some profit booking initiating in the market, which may correct up to 38760- 38405-38205 levels

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