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Nifty

Nifty opened with an upward gap but witnessed profit booking from the opening tick which erased most of the earlier gains. Nifty closed at 17522 with a loss of 83 points.

On the daily chart the index has formed a bearish candle with upper shadow indicating selling pressure as well as resistance at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating an uptrend. The chart pattern suggests that if Nifty crosses and sustains above 17700 level it would witness buying which would lead the index towards 17800-17900 levels. However if index breaks below 17450 level it would witness selling which would take the index towards 17300-17200. Nifty is trading above its 20, 50 , 100 and 200 day SMA which indicates positive bias in the short term. Nifty continues to remain in an uptrend for the short 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.

he trend deciding level for the day is 17580. If NIFTY trades above this level then we may witness a further rally up to 17670-17820-17910 levels. However, if NIFTY trades below 17580 levels then we may see some profit booking initiating in the market, which may correct up to 17430-17340-17190 levels.

Banknifty

Banknifty opened on a positive note and extended buying momentum in the initial hour however selling pressure at higher levels led the index to close near the day's low. Banknifty closed at 38951 with a loss of 88 points.

On the daily chart the index has formed a bearish candle with upper shadow indicating selling pressure as well as resistance at higher levels. 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 Banknifty crosses and sustains above 39200 level it would witness buying which would lead the index towards 39500-39800 levels. However if index breaks below 38800 level it would witness selling which would take the index towards 38600-38300. Banknifty is trading above 20, 50 , 100 and 200 day SMA indicating positive bias in the short to medium term. Banknifty continues to remain in an uptrend in the short 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 at higher levels.

The trend deciding level for the day is 39075. If BANK NIFTY trades above this level then we may witness a further rally up to 39345-39745-40015 levels. However, if BANK NIFTY trades below 39075 levels then we may see some profit booking initiating in the market, which may correct up to 38680-38405-38010 levels.

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