Nifty opened with an upward gap but witnessed selling from the opening hour to end on a negative note - Axis Securities
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Nifty
Nifty opened with an upward gap but witnessed selling from the opening hour to end on a negative note. On 16th June, Nifty closed at 18688 with a loss of 68 points. On the daily chart the index has formed a "bearish engulfing" candle after facing major resistance near the 18800 levels indicating profit booking at higher levels. The index continues to move in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias in a medium term. The chart pattern suggests that if Nifty crosses and sustains above 18750 level it would witness buying which would lead the index towards 18800-18900 levels.
Important Support for the day is around 18650 however if index sustains below 18650 then it may witness profit booking which would take the index towards 18600-18500 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 strength indicator RSI has turned negative from the overbought territory and is below its reference line indicating a profit booking. The trend deciding level for the day is 18715.
If NIFTY trades above this level then we may witness a further rally up to 18765-18840-18890 levels. However, if NIFTY trades below 18715 levels then we may see some profit booking initiating in the market, which may correct up to 18640-18590-18515 levels.
Bank Nifty
Banknifty opened on a flat note but selling led the index downwards to end in red. On 16th June, Banknifty closed at 43444 with a loss of 544 points. On the daily chart, the index has formed a bearish candle forming lower High-Low compared to previous session and has also closed below previous session's low indicating further weakness. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a medium term up trend. The chart pattern suggests that if Nifty crosses and sustains above 43600 level it would witness buying which would lead the index towards 43800-43900 levels. Important Support for the day is around 43350 However if index sustains below 43350 then it may witness profit booking which would take the index towards 43200-43100 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 is moving downwards and is quoting below its reference line indicating profit booking. The trend deciding level for the day is 43640.
If BANK NIFTY trades above this level then we may witness a further rally up to 43880-44320-44560 levels. However, if BANK NIFTY trades below 43640 levels then we may see some profit booking initiating in the market, which may correct up to 43200-42960-42520 levels.
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