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Nifty

Nifty opened with an upward gap and formed shadows on either side indicating lack of bullish confidence amongst participants . Nifty closed at 16295 with a gain of 36 points.

On the daily chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 16300 level it would witness buying which would lead the index towards 16500-16600 levels. However if index breaks below 16200 level it would witness selling which would take the index towards 16000-15900. Nifty is trading above 20 and 50 day SMA's indicating positive bias in the short to medium 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 turned positive from the oversold territory and is above its reference line indicating sustained uptrend.

The trend deciding level for the day is 16285. If NIFTY trades above this level then we may witness a further rally up to 16360-16425-16500 levels. However, if NIFTY trades below 16285 levels then we may see some profit booking initiating in the market, which may correct up to 16220-16145-16080 levels

Banknifty

Banknifty opened on a flat note but selling led the index downwards to end in red. Banknifty closed at 35835 with a loss of 193 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 eitherside. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Banknifty crosses and sustains above 36000 level it would witness buying which would lead the index towards 36400-36800 levels. Important Supports for the day is around 35600 However if index sustains belwo 35600 then it may witness profit booking which would take the index towards 35400-35200 levels.. Banknifty is trading above 20 and 50 day SMA's indicating positive bias in the short to 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 has turned positive from the oversold territory and is above its reference line indicating sustained uptrend.

The trend deciding level for the day is 35870. If BANK NIFTY trades above this level then we may witness a further rally up to 36080-36325-36535 levels. However, if BANK NIFTY trades below 35870 levels then we may see some profit booking initiating in the market, which may correct up to 35625-35415-35170 levels

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