Nifty opened sharply lower with a downward gap and traded with extreme volatility throughout the session to close - Axis Securities Ltd
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
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 17397 with a loss of 188 points.
On the daily chart the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance at higher levels. 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 Nifty crosses and sustains above 17450 level it would witness buying which would lead the index towards 17550-17650 levels. However if index breaks below 17350 level it would witness selling which would take the index towards 17250-17200. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 has turned negative from the overbought territory and is below its reference line indicating sustained downtrend.
The trend deciding level for the day is 17460. If NIFTY trades above this level then we may witness a further rally up to 17560-17720-17820 levels. However, if NIFTY trades below 17460 levels then we may see some profit booking initiating in the market, which may correct up to 17300-17200-17035 levels
Banknifty
Banknifty opened with a downward gap and traded with extreme volatility on either side to close on a negative note. Banknifty closed at 37146 with a loss of 666 points.
On the daily chart, the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance at higher levels. 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 37300 level it would witness buying which would lead the index towards 37600-37900 levels. However if index breaks below 37000 level it would witness selling which would take the index towards 36800-36600. 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 has turned negative from the overbought territory and is below its reference line indicating sustained downtrend.
The trend deciding level for the day is 37340. If BANK NIFTY trades above this level then we may witness a further rally up to 37610-38075-38345 levels. However, if BANK NIFTY trades below 37340 levels then we may see some profit booking initiating in the market, which may correct up to 36875-36605-36140 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
