Nifty opened with a downward gap and remained extremely volatile on either side - Axis Securities Ltd
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Nifty
Nifty opened with a downward gap and remained extremely volatile on either side. Nifty closed at 17077 with a loss of 75 points.
On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure as well as resistance at higher levels. 16850-16700 is a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. The chart pattern suggests that if Nifty crosses and sustains above 17100 level it would witness buying which would lead the index towards 17200-17300 levels. Important Support for the day is around 17000 However if index sustains below 17000 then it may witness profit booking which would take the index towards 16900-16800 levels. Nifty is trading below its 20, 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 continues to remain flat and is above its reference line indicating absence of momentum on either side
The trend deciding level for the day is 17110. If NIFTY trades above this level then we may witness a further rally up to 17175-17270-17335 levels. However, if NIFTY trades below 17110 levels then we may see some profit booking initiating in the market, which may correct up to 17015-16950-16855 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 39617 with a loss of 382 points.
On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure as well as resistance at 20 SMA (40154). The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 39850 level it would witness buying which would lead the index towards 40000-40150 levels. Important Support for the day is around 39500 However if index sustains below 39500 then it may witness profit booking which would take the index towards 39350-39200 levels. 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 continues to remain flat and is above its reference line indicating absence of momentum on either side.
The trend deciding level for the day is 39790. If BANK NIFTY trades above this level then we may witness a further rally up to 40030-40440-40675 levels. However, if BANK NIFTY trades below 39790 levels then we may see some profit booking initiating in the market, which may correct up to 39380-39140-38730 levels.
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