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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 the index higher to close near the day's high. Nifty closed at 19754 on 31st July with a gain of 108 points.

On the daily chart the index has formed a bullish candle with a long lower shadow indicating buying at 20 daily SMA (19598). The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 19800 level it would witness buying which would lead the index towards 19900-20000 levels. Important Support for the day is around 19650 However if index sustains below 19650 then it may witness profit booking which would take the index towards 19600-19500 levels. Nifty is trading above 20, 50, 100 and 200 day SMA indicating positive bias in the short to medium term. Nifty continues to remain in an uptrend for the short term, so buying on dips continues to be our preferred strategy.

The daily RSI is on the brink of crossing above its reference line, poised to signal a positive bias.

The trend deciding level for the day is 19710. If NIFTY trades above this level then we may witness a further rally up to 19820-19885-19995 levels. However, if NIFTY trades below 19710 levels then we may see some profit booking initiating in the market, which may correct up to 19645-19535-19470 levels

Bank Nifty

Banknifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Banknifty closed at 45651 on 31st July with a gain of 183 points.

On the daily chart index has formed a bullish candle however it remained restricted within previous session's HighLow range indicating absence of strength on either side. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Nifty crosses and sustains above 45750 level it would witness buying which would lead the index towards 45800-46000 levels. Important Support for the day is around 45550 However if index sustains below 45550 then it may witness profit booking which would take the index towards 45350-45250 levels. Banknifty is sustaining above its 20, 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 continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 45570. If BANK NIFTY trades above this level then we may witness a further rally up to 45775-45905-46115 levels. However, if BANK NIFTY trades below 45570 levels then we may see some profit booking initiating in the market, which may correct up to 45440-45235-45105 levels.

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