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Nifty

Nifty opened on a positive note and witnessed profit booking in initial hours however buying support at lower pulled index higher to close near the day's high. Nifty closed at 16170 with a gain of 144 points.

On the daily chart the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. Since past 10-15 sessions the index continues to consolidate in a broad trading range (16500-15700) representing a sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 16250 levels it would witness buying which would lead the index towards 16500-16600 levels. However if the index breaks below 16100 level it would witness selling which would take the index towards 16000-15800. Nifty is trading below its 20, 50, 100, and 200-day SMA which indicates negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy.

The daily strength indicator RSI has turned positive from the oversold territory and is above its reference line indicating positive bias.

The trend deciding level for the day is 16095. If NIFTY trades above this level then we may witness a further rally up to 16280-16395-16585 levels. However, if NIFTY trades below 16095 levels then we may see some profit booking initiating in the market, which may correct up to 15980-15790-15680 levels.

Bank Nifty

Banknifty opened with an upward gap and remained in positive terrain throughout the day. Banknifty closed at 35095 with a gain of 755 points.

On the daily chart index has formed a bullish candle and has closed above its previous session's high representing positive bias ahead. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 35200 level it would witness buying which would lead the index towards 35500-35800 levels. However if index breaks below 35000 level it would witness selling which would take the index towards 34700-34500. Banknifty is trading below 20, 50, 100 and 200 day SMA indicating negative bias in the short to medium term. Banknifty continues

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 34915. If BANK NIFTY trades above this level then we may witness a further rally up to 35405-35710-36200 levels. However, if BANK NIFTY trades below 34915 levels then we may see some profit booking initiating in the market, which may correct up to 34605-34115-33810 levels.

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