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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 16952 with a loss of 34 points.

On the daily chart index has formed a bearish candle however it remained restricted within past two session's HighLow range indicating absence of strength on either side. 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. The chart pattern suggests that if Nifty crosses and sustains above 17000 level it would witness buying which would lead the index towards 17100-17200 levels. Important Support for the day is around 16900 However if index sustains below 16900 then it may witness profit booking which would take the index towards 16800-16700 levels.. Nifty is trading below its 20, 50, 100, and 200-day SMA which indicates negative bias in the short to medium 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 is moving downwards and is quoting below its reference line indicating negative bias.

The trend deciding level for the day is 16975. If NIFTY trades above this level then we may witness a further rally up to 17040-17125-17185 levels. However, if NIFTY trades below 16975 levels then we may see some profit booking initiating in the market, which may correct up to 16890-16830-16740 levels.

Bank Nifty

Banknifty opened with an upward gap and remained range bound for the first part of the session. However, last hour pullback action pulled the index higher and closed on a positive note. Banknifty closed at 39568 with a gain of 137 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 daily chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 39750 level it would witness buying which would lead the index towards 39900-40000 levels. Important Support for the day is around 39400 However if index sustains below 39400 then it may witness profit booking which would take the index towards 39250-39000 levels. Banknifty is trading below 20, 50, 100 and 200 day SMA indicating negative bias in the short to medium 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 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 39515. If BANK NIFTY trades above this level then we may witness a further rally up to 39700-39830-40020 levels. However, if BANK NIFTY trades below 39515 levels then we may see some profit booking initiating in the market, which may correct up to 39380-39195-39060 levels.

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