IGI Logo

Nifty

Nifty opened sharply lower with a downward gap and traded with extreme volatility throughout the session to close on a negative note. Nifty closed at 15799 with a loss of 51 points. On the daily chart the index has formed a small Bullish candle with upper shadow indicating selling pressure as well as resistance at higher levels. 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 the index breaks below 15700 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 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 15785. If NIFTY trades above this level then we may witness a further rally up to 15880-15955-16050 levels. However, if NIFTY trades below 15785 levels then we may see some profit booking initiating in the market, which may correct up to 15705-15610-15530 levels.

Bank Nifty

Banknifty opened with a downward gap and selling pressure throughout the session led it to close near day's low. Banknifty closed at 33270 with a loss of 373 points. On the daily chart, the index has formed a bearish candle forming lower High-Low compared to previous session and has also closed below previous session's low indicating further weakness. 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 33400 level it would witness buying which would lead the index towards 33600-33800 levels. However if index breaks below 33200 level it would witness selling which would take the index towards 33000-32600. 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 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 33295. If BANK NIFTY trades above this level then we may witness a further rally up to 33400-33530-33640 levels. However, if BANK NIFTY trades below 33295 levels then we may see some profit booking initiating in the market, which may correct up to 33165-33055-32925 levels.

To Read Complete Report & Disclaimer Click Here
 

For More Axis Securities Disclaimer  https://simplehai.axisdirect.in/disclaimer-home

SEBI Registration number is INZ000161633

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer