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Nifty

Nifty opened with downward gap and selling pressure throughout the session led it to close near day's low. Nifty closed at 17322 with a loss of 129 points. On the daily chart the index has formed a small Bearish candle forming lower High-Low compared to previous session indicating negative bias. The index is holding above the crucial support zone around 17300 level. The chart pattern suggests that if Nifty crosses and sustains above 17400 level it would witness buying which would lead the index towards 17500-17600 levels. Important Support for the day is around 17300 However if index sustains below 17300 then it may witness profit booking which would take the index towards 17100-17000 levels. Nifty is trading below 20, 50, 100, 200 day SMA indicating negative bias in the short. Nifty continues to remain in an uptrend for the medium 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 17360. If NIFTY trades above this level then we may witness a further rally up to 17410-17500-17550 levels. However, if NIFTY trades below 17360 levels then we may see some profit booking initiating in the market, which may correct up to 17270-17220-17130 levels.

Banknifty

Banknifty opened with a downward gap and traded with extreme volatility on either side to close on a negative note. Banknifty closed at 40390 with a loss of 308 points. On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure as well as resistance at higher levels. The index is holding above the previous swing low around 39500 level indicating a crucial support zone. The chart pattern suggests that if Bank Nifty crosses and sustains above 40600 level it would witness buying which would lead the index towards 40800-41000 levels. Important Support for the day is around 40200 However if index sustains below 40200 then it may witness profit booking which would take the index towards 40000-39900 levels. Banknifty is trading above its 200 day SMA which indicates positive bias in the 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 continues to remain flat and is above its reference line indicating absence of momentum on either side The trend deciding level for the day is 40490. If BANK NIFTY trades above this level then we may witness a further rally up to 40670-40950-41130 levels. However, if BANK NIFTY trades below 40490 levels then we may see some profit booking initiating in the market, which may correct up to 40210-40030-39750 levels.

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