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Nifty

Nifty opened with an upward gap, experiencing selling in the first part of the session, but a last-hour pullback action aided in recovering some losses. Nifty closed at 19660 on 27th July with a loss of 118 points.

On the daily chart the index has formed a bearish candle with a lower shadow indicating buying at lower levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 19700 level it would witness buying which would lead the index towards 19800-19900 levels. Important Support for the day is around 19600 However if index sustains below 19600 then it may witness profit booking which would take the index towards 19550-19450 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 is moving downwards and is quoting below its reference line indicating profit booking.

The trend deciding level for the day is 19710. If NIFTY trades above this level then we may witness a further rally up to 19815-19975-20080 levels. However, if NIFTY trades below 19710 levels then we may see some profit booking initiating in the market, which may correct up to 19555-19445-19290 levels.

Bank Nifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a negative note. Banknifty closed at 45679 on 27th July with a loss of 383 points

On the daily chart the index has formed a "bearish engulfing" candle after facing major resistance near the 46300 levels indicating profit booking at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Nifty crosses and sustains above 45800 level it would witness buying which would lead the index towards 46000-46100 levels. Important Support for the day is around 45500 However if index sustains below 45500 then it may witness profit booking which would take the index towards 45400-45300 levels. Banknifty is sustaining above its 20, 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 45855. If BANK NIFTY trades above this level then we may witness a further rally up to 46135-46595-46875 levels. However, if BANK NIFTY trades below 45855 levels then we may see some profit booking initiating in the market, which may correct up to 45395-45115-44655 levels.

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