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Nifty

Nifty opened with an upward gap but witnessed selling from the opening tick to end on a flat note. Nifty closed at 16496 with a gain of 46 points.

On the daily chart the index has formed a bearish candle but is currently trading at all time highs indicating that current price action might just be a pullback.. 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 16600 level it would witness buying which would lead the index towards 16700-16800 levels. However if index breaks below 16400 level it would witness selling which would take the index towards 16300-16200. 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 but witnessed selling from the opening tick to end on a negative note. Banknifty closed at 35124 with a gain of 91 points.

On the daily chart the index has formed a Bearish candle with long lower shadow indicating buying support 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 35500 level it would witness buying which would lead the index towards 36000-36400 levels. Important Supports for the day is around 34800 However if index sustains below 34800 then it may witness profit booking which would take the index towards 34500-34000 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 has turned negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 35125. If BANK NIFTY trades above this level then we may witness a further rally up to 35430-35735-36040 levels. However, if BANK NIFTY trades below 35125 levels then we may see some profit booking initiating in the market, which may correct up to 34820-34515-34210 levels

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