Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day - Axis Securities
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Nifty
Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Nifty closed at 18044 with a loss of 24 points.
On the daily chart the index has formed a small Bearish candle forming higher High-Low compared to previous session representing strength. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 18100 level it would witness buying which would lead the index towards 18200-18300 levels. However if the index breaks below 17950 level it would witness selling which would take the index towards 17900-17800. Nifty is trading below 20 day SMA indicating negative 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 is moving upwards and is above its reference line indicating positive bias.
The trend deciding level for the day is 18045. If NIFTY trades above this level then we may witness a further rally up to 18110-18175-18240 levels. However, if NIFTY trades below 18045 levels then we may see some profit booking initiating in the market, which may correct up to 17980-17915-17850 levels
Banknifty
Banknifty opened on a flat note and remained in a small range throughout the day. Banknifty closed at 39369 with a loss of 69 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 Banknifty crosses and sustains above 39600 level it would witness buying which would lead the index towards 39800-40100 levels. However if index breaks below 39200 level it would witness selling which would take the index towards 39000-38700. Banknifty is trading below its 20 day SMA which indicates negative 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 is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 39385. If BANK NIFTY trades above this level then we may witness a further rally up to 39545-39720-39880 levels. However, if BANK NIFTY trades below 39385 levels then we may see some profit booking initiating in the market, which may correct up to 39210-39045-38870 levels.
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