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Nifty

Nifty opened with an upward gap but witnessed selling from the opening hour to end on a flat note. Nifty closed at 18118 with a loss of 0.25 points.

On the daily chart the index has formed a small bearish candle and traded with the lackluster movement throughout the session. Index is facing a resistance at a downward sloping trendline from the all-time high on the other hand it is taking support around the gap area of 17800 level. The chart pattern suggests that if Nifty crosses and sustains above 18200 level it would witness buying which would lead the index towards 18300-18400 levels. Important Support for the day is around 18000 However if index sustains below 18000 then it may witness profit booking which would take the index towards 17900-17800 levels.. Nifty is trading above longer term averages of 100 & 200 SMA indicating positive bias in the 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 strength indicator RSI is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 18135. If NIFTY trades above this level then we may witness a further rally up to 18185-18255-18310 levels. However, if NIFTY trades below 18135 levels then we may see some profit booking initiating in the market, which may correct up to 18065-18010-17940 levels.

Banknifty

Banknifty opened with an upward gap but witnessed selling from the opening hour to close on a negative note. Banknifty closed at 42733 with a loss of 88 points.

On the daily chart the index has formed a "bearish engulfing" candle after facing major resistance at a downward sloping trendline from all-time high of 44152 indicating profit booking at higher levels. Index is consolidating in a descending triangle pattern. The chart pattern suggests that if Nifty crosses and sustains above 42900 level it would witness buying which would lead the index towards 43100-43300 levels. Important Support for the day is around 42600 However if index sustains below 42600 then it may witness profit booking which would take the index towards 42400-42200 levels.. Banknifty is trading above its 200 day SMA which indicates positive bias in the 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 continues to remain flat and is above its reference line indicating absence of momentum on either side The trend deciding level for the day is 42810. If BANK NIFTY trades above this level then we may witness a further rally up to 43005-43275-43465 levels. However, if BANK NIFTY trades below 42810 levels then we may see some profit booking initiating in the market, which may correct up to 42540-42345-42075 levels.

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