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Nifty

Nifty opened with an upward gap but and buying momentum for most of the session led index to close near the day’s high. Nifty closed at 16625 with a gain of 128 points.

On the daily chart the index has formed a sizable bullish candle forming higher High-Low compared to previous session indicating positive bias. 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 16650 level it would witness buying which would lead the index towards 16700-16800 levels. However if index breaks below 16550 level it would witness selling which would take the index towards 16500-16400. Nifty is trading above 20 and 50 day SMA's indicating positive 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 has turned positive from the oversold territory and is above its reference line indicating sustained uptrend.

The trend deciding level for the day is 16495. If NIFTY trades above this level then we may witness a further rally up to 16595-16690-16790 levels. However, if NIFTY trades below 16495 levels then we may see some profit booking initiating in the market, which may correct up to 16395-16300-16200 levels

Banknifty

Banknifty opened with an upward gap and remained in positive terrain throughout the day. Banknifty closed at 35712 with a gain of 588 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 Banknifty crosses and sustains above 35800 level it would witness buying which would lead the index towards 36200-36600 levels. Important Supports for the day is around 35200 However if index sustains below 35200 then it may witness profit booking which would take the index towards 34800-34500 levels.. 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 continue to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 35525. If BANK NIFTY trades above this level then we may witness a further rally up to 35980-36250-36705 levels. However, if BANK NIFTY trades below 35525 levels then we may see some profit booking initiating in the market, which may correct up to 35255-34800-34530 levels

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