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Nifty

Nifty opened with a downward gap and traded with extreme volatility on either side to close on a negative note. Nifty closed at 19543 on 10th August with a loss of 89 points. On the daily chart index has formed a bearish candle however it remained restricted within previous session’s highlow range indicating absence of strength on either side. It exhibits a minor descending channel pattern, encountering resistance at its 20-day simple moving average at 19664; a sustained breach above this level is likely to perpetuate the prevailing uptrend. 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 19600 level it would witness buying which would lead the index towards 19650-19750 levels. Important support for the day is around 19500 however if index sustains below 19500 then it may witness profit booking which would take the index towards 19400-19300 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 short 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 19555. If NIFTY trades above this level then we may witness a further rally up to 19615-19680-19740 levels. However, if NIFTY trades below 19555 levels then we may see some profit booking initiating in the market, which may correct up to 19485-19425-19355 levels.

Bank Nifty

Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Banknifty closed at 44838 on 07th August with a loss of 42 points.

On the daily chart index has formed a bearish candle however it remained restricted within previous session's High-Low range indicating absence of strength on either side. 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 44900 level it would witness buying which would lead the index towards 45000-45200 levels. Important Support for the day is around 44750 However if index sustains below 44750 then it may witness profit booking which would take the index towards 44650-44500 levels Banknifty is sustaining above its 50, 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 continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 44875. If BANK NIFTY trades above this level then we may witness a further rally up to 44975-45110-45210 levels. However, if BANK NIFTY trades below 44875 levels then we may see some profit booking initiating in the market, which may correct up to 44735-44635-44500 levels

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