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Nifty

Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 17557 with a gain of 159 points. On the daily chart index has formed a bullish candle and has closed above its previous session's high representing positive bias ahead. Index is trading in a falling channel, 16850-16700 is a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. On the other hand, the upper band of the falling channel which is placed at 17700 will act as crucial resistance. The chart pattern suggests that if Nifty crosses and sustains above 17600 level it would witness buying which would lead the index towards 17700-17800 levels. Important Support for the day is around 17500 However if index sustains below 17500 then it may witness profit booking which would take the index towards 17400-17300 levels.. Nifty is trading below its 100 day SMA which indicates negative bias in the short term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies 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 pullback in the short term. . The trend deciding level for the day is 17510. If NIFTY trades above this level then we may witness a further rally up to 17620-17680-17785 levels. However, if NIFTY trades below 17510 levels then we may see some profit booking initiating in the market, which may correct up to 17450-17340-17280 levels.

Banknifty

Banknifty opened with an upward gap and witnessed extreme volatility on either side throughout the day. Banknifty closed at 40999 with a gain of 186 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 is approaching a bearish gap area between 41208 and 40840 levels which may act as crucial resistance. The chart pattern suggests that if Bank Nifty crosses and sustains above 41200 level it would witness buying which would lead the index towards 41300-41500 levels. Important Support for the day is around 40800 However if index sustains below 40800 then it may witness profit booking which would take the index towards 40700-40500 levels. Banknifty is trading below 100 day SMA indicating negative bias in the short term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI is moving upwards and is above its reference line indicating pullback action. The trend deciding level for the day is 40960. If BANK NIFTY trades above this level then we may witness a further rally up to 41115-41225-41380 levels. However, if BANK NIFTY trades below 40960 levels then we may see some profit booking initiating in the market, which may correct up to 40845-40690-40575 levels.

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