Nifty opened with a downward gap but remained in positive terrain throughout the day - Axis Securities
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Nifty
Nifty opened with a downward gap but remained in positive terrain throughout the day. Nifty closed at 14634 with a gain of 3 points.
On the daily chart index has formed a bullish candle but has made a lower high and a lower low compared to the previous session indicating signs of short covering.. 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 14700 level it would witness buying which would lead the index towards 14900-15000 levels. However if index breaks below 14550 level it would witness selling which would take the index towards 14400-14250. 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 retraced back to the 50 mark indicating easing of momentum.
The trend deciding level for the day is 14575. If NIFTY trades above this level then we may witness a further rally up to 14735-14830-14990 levels. However, if NIFTY trades below 14575 levels then we may see some profit booking initiating in the market, which may correct up to 14475-14315-14220 levels
Banknifty
Banknifty opened with a downward gap and witnessed selling for first part of the session. However last hour pullback action pulled index higher and recovered some of the earlier losses.. Banknifty closed at 32466 with a loss of 316 points.
On the daily chart the index has formed a Bullish candle with a lower shadow indicating buying at lower levels. 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 Banknifty crosses and sustains above 32800 level it would witness buying which would lead the index towards 33200-33600 levels. Important Supports for the day is around 32200 However if index sustains belwo 32200 then it may witness profit booking which would take the index towards 31800- 31400 levels.. Banknifty is trading above its 20 day SMA which indicates positive bias in the short 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 retraced back to the 50 mark indicating easing of momentum.
The trend deciding level for the day is 32315. If BANK NIFTY trades above this level then we may witness a further rally up to 32720-32975-33380 levels. However, if BANK NIFTY trades below 32315 levels then we may see some profit booking initiating in the market, which may correct up to 32060-31655-31400 levels
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