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Nifty

Nifty opened sharply lower with a downward gap and selling pressure throughout the session dragged it lower to close near the day's low. Nifty closed at 15809 with a loss of 431 points. On the daily chart the index has formed a sizable bearish candle and has closed below previous session's low indicating negative bias.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 15900 level it would witness buying which would lead the index towards 16000-16200 levels. However if index breaks below 15700 level it would witness selling which would take the index towards 15600-15500. Nifty is trading below its20, 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 is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 15855. If NIFTY trades above this level then we may witness a further rally up to 15940-16065-16145 levels. However, if NIFTY trades below 15855 levels then we may see some profit booking initiating in the market, which may correct up to 15730-15645-15520 levels.

Banknifty

Banknifty opened lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels erased some of the earlier losses. Banknifty closed at 33316 with a loss of 848 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 Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 33500 level it would witness buying which would lead the index towards 33700-34000 levels. However if index breaks below 33100 level it would witness selling which would take the index towards 33000- 32500. Banknifty is trading below 20, 50, 100 and 200 day SMA indicating negative bias in the short to medium term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily and weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 33375. If BANK NIFTY trades above this level then we may witness a further rally up to 33575-33830-34025 levels. However, if BANK NIFTY trades below 33375 levels then we may see some profit booking initiating in the market, which may correct up to 33120-32925-32665 levels.

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