IGI Logo

Nifty

Nifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Nifty closed at 14296 with a loss of 63 points.

On the daily chart, the index has formed a sizable bearish candle forming low around its major support zone of 14200 levels. Since past six session index continue to consolidate in a broad trading range (14700-14200) representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 14400 level it would witness buying which would lead the index towards 14500-14600 levels. However if index breaks below 14200 level it would witness selling which would take the index towards 14100-14000. Nifty is trading below its 20, 50 and 100- day SMA which indicates negative bias in the short 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 14345. If NIFTY trades above this level then we may witness a further rally up to 14480-14665-14800 levels. However, if NIFTY trades below 14345 levels then we may see some profit booking initiating in the market, which may correct up to 14160-14025-13840 levels.

Banknifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Banknifty closed at 31113 with a loss of 96 points.

On the daily chart, the index has formed a bearish candle forming higher High-Low compared to previous session which remains a positive sign. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 31500 level it would witness buying which would lead the index towards 31800-32200 levels. However if index breaks below 30800 level it would witness selling which would take the index towards 30500-30300. Banknifty is trading below 20 , 50 and 100 day SMA's which indicating negative bias in the short 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 negative bias.

The trend deciding level for the day is 31245. If BANK NIFTY trades above this level then we may witness a further rally up to 31600-32085-32440 levels. However, if BANK NIFTY trades below 31245 levels then we may see some profit booking initiating in the market, which may correct up to 30760-30405-29920 levels.

To Read Complete Report & Disclaimer Click Here

For More Axis Securities Disclaimer  https://simplehai.axisdirect.in/disclaimer-home
SEBI Registration number is INZ000161633

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer