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Nifty

Nifty opened sharply lower with a downward gap however buying support at lower levels recovered earlier losses and close on a flat note. Nifty closed at 19435 on 14th August with a gain of 6 points.

On the daily chart the index has formed a bullish candle with a long lower shadow indicating buying at lower levels. The index currently maintains a notable support zone ranging from 19300 to 19250. This support zone is characterized by a convergence of horizontal support and the 50-day Simple Moving Average (SMA). The index continues to move in a lower top and lower bottom formation on the hourly chart indicating profit booking in a short term. The chart pattern suggests that if Nifty crosses and sustains above 19500 level it would witness buying which would lead the index towards 19550-19700 levels. Important Supports for the day is around 19350 however if index sustains below 19350 then it may witness profit booking which would take the index towards 19250-19100 levels. Nifty is trading above 50, 100 and 200 day SMA indicating positive bias in the medium term. Nifty continues to remain in an uptrend for the medium term, so buying on dips continues to be our preferred strategy.

The daily RSI remains flat and below its reference line, suggesting a neutral momentum with no clear direction

The trend deciding level for the day is 19385. If NIFTY trades above this level then we may witness a further rally up to 19515-19595-19720 levels. However, if NIFTY trades below 19385 levels then we may see some profit booking initiating in the market, which may correct up to 19305-19180-19100 levels.

Bank Nifty

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 44091 on 14th August with a loss of 108 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 continues to move in a lower top and lower bottom formation on the hourly chart indicating profit booking in a short term. The chart pattern suggests that if Nifty crosses and sustains above 44200 level it would witness buying which would lead the index towards 44300- 44500 levels. Important Support for the day is around 44000 however if index sustains below 44000 then it may witness profit booking which would take the index towards 43800-43700 levels. Banknifty is sustaining above its 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 downwards and is quoting below its reference line indicating profit booking in a short term.

The trend deciding level for the day is 44025. If BANK NIFTY trades above this level then we may witness a further rally up to 44275-44465-44715 levels. However, if BANK NIFTY trades below 44025 levels then we may see some profit booking initiating in the market, which may correct up to 43840-43590-43405 levels.

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