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Nifty

Nifty opened with an upward gap however selling pressure throughout the session led it to close near day's low. Nifty closed at 17889 with a loss of 41 points.

On the daily chart the index has formed a bearish candle with either side shadows indicating volatility throughout the session. The index is moving in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 17950 level it would witness buying which would lead the index towards 18000-18100 levels. However if index breaks below 17800 level it would witness selling which would take the index towards 17700-17600. 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 17915. If NIFTY trades above this level then we may witness a further rally up to 17985-18080-18150 levels. However, if NIFTY trades below 17915 levels then we may see some profit booking initiating in the market, which may correct up to 17820-17750-17655 levels

Banknifty

Banknifty opened on a flat note but buying led the index upwards to end in the green. Banknifty closed at 39938 with a gain of 175 points.

On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. 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 40100 levels it would witness buying which would lead the index towards 40300-40500 levels. However if index breaks below 39750 level it would witness selling which would take the index towards 39600-39400. 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 is moving downwards and is quoting below its reference line indicating negative bias. 

The trend deciding level for the day is 39880. If BANK NIFTY trades above this level then we may witness a further rally up to 40165-40395-40685 levels. However, if BANK NIFTY trades below 39880 levels then we may see some profit booking initiating in the market, which may correct up to 39650-39360-39135 levels.

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