Nifty opened with an upward gap but witnessed selling from the opening tick - Axis Securities
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Nifty
Nifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Nifty closed at 14910 with a loss of 19 points.
On the daily chart index has formed a bearish candle however it remained restricted within previous session's HighLow range indicating absence of strength on eitherside. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Nifty breaks and sustains below 14850 level it would witness selling which would lead the index towards 14700-14600 levels. Important Resistances for the day are placed at 15200-15300. Nifty is trading below 20 day SMA indicating negative 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 is moving downwards and is quoting below its reference line indicating negative bias.
The trend deciding level for the day is 14950. If NIFTY trades above this level then we may witness a further rally up to 15010-15110-15170 levels. However, if NIFTY trades below 14950 levels then we may see some profit booking initiating in the market, which may correct up to 14850-14790-14690 levels
Banknifty
Banknifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Banknifty closed at 34805 with a loss of 378 points. On the daily chart index has formed a bearish candle however it remained restricted within previous session's High-Low range indicating absence of strength on eitherside.
The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 35000 level it would witness buying which would lead the index towards 35500-36000 levels. However if index breaks below 34500 level it would witness selling which would take the index towards 34000-33800. Banknifty is trading below 20 day SMA indicating negative 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 remian flat and is below its reference line indicating absence of momentum on either side
The trend deciding level for the day is 34985. If BANK NIFTY trades above this level then we may witness a further rally up to 35225-35645-35885 levels. However, if BANK NIFTY trades below 34985 levels then we may see some profit booking initiating in the market, which may correct up to 34565-34325-33905 levels
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