Nifty opened with an upward gap and formed upper shadows indicating profit booking at higher level - Axis Securities
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Nifty
Nifty opened with an upward gap and formed upper shadows indicating profit booking at higher level. Nifty closed at 18101 with a gain of 242 points.
On the daily chart the index has formed Bullish candle with upper shadow indicating selling pressure as well as resistance at higher levels. The index on a positional basis is expected to face a resistance around 18350 which is a confluence of 50 day SMA and downward sloping trendline from all time high and on the other hand 17800 may act as a crucial support.. The chart pattern suggests that if Nifty crosses and sustains above 18200 level it would witness buying which would lead the index towards 18300-18400 levels. Important Support for the day is around 18000 However if index sustains below 18000 then it may witness profit booking which would take the index towards 17900- 17800 levels.. Nifty is trading above longer term averages of 100 & 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 has turned positive and is above its reference line indicating positive bias
The trend deciding level for the day is 18060. If NIFTY trades above this level then we may witness a further rally up to 18185-18265-18390 levels. However, if NIFTY trades below 18060 levels then we may see some profit booking initiating in the market, which may correct up to 17980-17855-17775 levels.
Banknifty
Banknifty opened with an upward gap and witnessed extreme volatility on either side throughout the day. Banknifty closed at 42583 with a gain of 394 points.
On the daily chart index has formed a small bullish candle carrying shadows on the either side indicating indecision at current levels.. The index continues to move in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 42700 level it would witness buying which would lead the index towards 42900-43100 levels. Important Support for the day is around 42400 However if index sustains below 42400 then it may witness profit booking which would take the index towards 42200-42000 levels.. Banknifty is trading above its 100 & 200 day SMA 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 at a verge of crossover above its reference line. Sustaining above its reference line will turn bias positive.
The trend deciding level for the day is 42495. If BANK NIFTY trades above this level then we may witness a further rally up to 42805-43025-43335 levels. However, if BANK NIFTY trades below 42495 levels then we may see some profit booking initiating in the market, which may correct up to 42275-41965-41745 levels.
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