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Nifty

Nifty opened with an upward gap and witnessed selling for first part of the session. However last hour pullback action pulled index higher to close near the day's high. Nifty closed at 17562 with a gain of 165 points

On the daily chart the index has formed a Bullish candle with a lower shadow indicating buying at lower levels. 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 17600 level it would witness buying which would lead the index towards 17650-17750 levels. However if index breaks below 17500 level it would witness selling which would take the index towards 17400-17350. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 17490. If NIFTY trades above this level then we may witness a further rally up to 17650-17740-17905 levels. However, if NIFTY trades below 17490 levels then we may see some profit booking initiating in the market, which may correct up to 17400-17235-17145 levels.

Banknifty

Banknifty opened on a flat note and witnessed selling for first part of the session. However last hour pullback action pulled index higher and recovered some of the earlier losses. Banknifty closed at 37236 with a gain of 90 points.

The price movement has resulted in a long “Legged Doji” candlestick pattern indicating uncertainty within bulls and bears.. 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 37350 level it would witness buying which would lead the index towards 37500-37750 levels. However if index breaks below 37000 level it would witness selling which would take the index towards 36800-36500. 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 negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 37035. If BANK NIFTY trades above this level then we may witness a further rally up to 37540-37850-38355 levels. However, if BANK NIFTY trades below 37035 levels then we may see some profit booking initiating in the market, which may correct up to 36730-36220-35915 levels.

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