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Nifty

Nifty opened with a downward gap and traded with extreme volatility on either side and gained bullish momentum at the end of the day. Nifty closed at 17649 with a gain of 45 points.

On the daily chart the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. The index took a support near a lower band of falling channel from all time high of 18887 which also confluence with 200 SMA placed at 17290 level. The chart pattern suggests that if Nifty crosses and sustains above 17700 level it would witness buying which would lead the index towards 17800-17900 levels. Important Support for the day is around 17600 However if index sustains below 17600 then it may witness profit booking which would take the index towards 17500-17400 levels.. Nifty is trading above longer term averages of 200 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 strength indicator RSI is moving downwards and is quoting below its reference line indicating profit booking.

The trend deciding level for the day is 17590. If NIFTY trades above this level then we may witness a further rally up to 17770-17890-18075 levels. However, if NIFTY trades below 17590 levels then we may see some profit booking initiating in the market, which may correct up to 17465-17285-17165 levels.

Banknifty

Banknifty opened with a downward gap and traded with extreme volatility on either side. Banknifty closed at 40387 with a gain of 42 points.

On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. 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 40500 level it would witness buying which would lead the index towards 41700-41900 levels. Important Support for the day is around 40200 However if index sustains below 40200 then it may witness profit booking which would take the index towards 40000-39800 levels.. Banknifty is trading above its 200 day SMA (38720) which indicates positive bias in the 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 profit booking. The trend deciding level for the day is 40200. If BANK NIFTY trades above this level then we may witness a further rally up to 40980-41570-42350 levels. However, if BANK NIFTY trades below 40200 levels then we may see some profit booking initiating in the market, which may correct up to 39610-38830-38240 levels

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