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Nifty

Nifty opened sharply lower with a downward gap and selling pressure throughout the session dragged it lower to close on a negative note. Nifty closed at 15728 with a loss of 152 points. On the daily chart index has formed a bearish candle forming lower High-Low compared to previous session indicating further weakness. Since past four-five weeks index continue to consolidate in a broad trading range (15900-15600) representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 15800 level it would witness buying which would lead the index towards 15900-16000 levels. However if index breaks below 15680 level it would witness selling which would take the index towards 15600-15500. Nifty is trading below 20 day SMA indicating negative bias in the short to medium term. Nifty 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 downwards and is quoting below its reference line indicating negative bias.

The trend deciding level for the day is 15765. If NIFTY trades above this level then we may witness a further rally up to 15850-15970-16050 levels. However, if NIFTY trades below 15765 levels then we may see some profit booking initiating in the market, which may correct up to 15645-15565-15440 levels.

Banknifty

Banknifty opened with downward gap and selling pressure throughout the session led it to close near day's low. Banknifty closed at 35274 with a loss of 497 points.

On the daily chart the index has formed a bearish candle forming lower High-Low formation compeered to previous session which remains a negative sign. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Banknifty crosses and sustains above 35500 level it would witness buying which would lead the index towards 35800-36000 levels. However if index breaks below 35100 level it would witness selling which would take the index towards 34900-34700. Banknifty is trading above 20 and 50 day SMA's indicating positive bias in the short to medium 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 downwards and is quoting below its reference line indicating negative bias.

The trend deciding level for the day is 35405. If BANK NIFTY trades above this level then we may witness a further rally up to 35680-36085-36355 levels. However, if BANK NIFTY trades below 35405 levels then we may see some profit booking initiating in the market, which may correct up to 35000- 34730-34325 levels.

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