Nifty opened with an upward gap and witnessed selling for the first part of the session - Axis Securities
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Nifty
Nifty opened with an upward gap and witnessed selling for the first part of the session. However, last hour pullback action pulled index higher to erase some losses. Nifty closed at 17992 with a loss of 51 points.
On the daily chart the index has formed a bearish candle and has closed below previous session's low indicating negative bias.. The index is moving 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 18100 levels it would witness buying which would lead the index towards 18200-18300 levels. Important Supports for the day is around 17900 However if index sustains below 17900 then it may witness profit booking which would take the index towards 17800-17700 levels.. Nifty is trading above longer term averages of 100 & 200 SMA indicating positive bias in the medium term.. However Nifty is trading below short term averages of 20 & 50 SMA indicating negative bais in a short 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 is moving downwards from the 50 level mark and is quoting below its reference line indicating profit booking in a short term.
The trend deciding level for the day is 18000. If NIFTY trades above this level then we may witness a further rally up to 18110-18230-18340 levels. However, if NIFTY trades below 18000 levels then we may see some profit booking initiating in the market, which may correct up to 17885-17775-17655 levels
Banknifty
Banknifty opened on a positive note but selling led the index downwards to end in red. Banknifty closed at 42609 with a loss of 350 points
On the daily chart the index has formed a bearish candle and violated previous session's low indicating further weakness. The index hold medium term upward sloping trendline from 37386 in today's trade . The chart pattern suggests that if Nifty crosses and sustains above 42800 level it would witness buying which would lead the index towards 43000-43200 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 sustaining above its 50, 100 and 200- day SMA which signals bullish sentiments in near 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 profit booking in a short term.
The trend deciding level for the day is 42680. If BANK NIFTY trades above this level then we may witness a further rally up to 43065-43520-43905 levels. However, if BANK NIFTY trades below 42680 levels then we may see some profit booking initiating in the market, which may correct up to 42225-41845-41385 levels.
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