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Nifty

Nifty opened on a positive note however we witnessed profit booking for most part of the day erased earlier gains to close with marginal gains. Nifty closed at 18813 with a gain of 54 points.

On the daily chart the index has formed a small bearish candle but it is currently trading at all time highs indicating that current price action might just be a profit booking at higher level. 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 18700 However if index sustains below 18700 then it may witness profit booking which would take the index towards 18600-18500 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 moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 18825. If NIFTY trades above this level then we may witness a further rally up to 18875-18935-18985 levels. However, if NIFTY trades below 18825 levels then we may see some profit booking initiating in the market, which may correct up to 18765-18715-18655 levels

Banknifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a flat note. Banknifty closed at 43261 with a gain of 30 points.

On the daily chart the index has formed a Bearish candle with a lower shadow indicating buying at lower levels. 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 Banknifty crosses and sustains above 43350 level it would witness buying which would lead the index towards 43500-43700 levels. Important Support for the day is around 43100 However if index sustains below 43100 then it may witness profit booking which would take the index towards 42900-42700 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 43295. If BANK NIFTY trades above this level then we may witness a further rally up to 43485-43705-43895 levels. However, if BANK NIFTY trades below 43295 levels then we may see some profit booking initiating in the market, which may correct up to 43070-42880-42655 levels.

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