On the daily chart the index has formed a bearish candle with a lower shadow indicating buying at lower levels - Axis Securities
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Nifty
Nifty opened on a flat note however profit booking for most part of the session led the index downwards to end in red. On 17th May, Nifty closed at 18182 with a loss of 105 points.
On the daily chart the index has formed a bearish candle with a lower shadow indicating buying at lower levels. The index continues to move in a higher top and higher bottom formation on the daily chart indicating positive bias in a medium term. The chart pattern suggests that if Nifty crosses and sustains above 18250 level it would witness buying which would lead the index towards 18350-18500 levels. Important Supports for the day is around 18100 However if index sustains below 18100 then it may witness profit booking which would take the index towards 18000- 17900 levels. Nifty is trading above 20, 50, 100 and 200 day SMA's indicating positive bias in the 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 has turned negative from the overbought territory and is below its reference line indicating profit booking in a short term.
The trend deciding level for the day is 18200. If NIFTY trades above this level then we may witness a further rally up to 18290-18395-18480 levels. However, if NIFTY trades below 18200 levels then we may see some profit booking initiating in the market, which may correct up to 18095-18010-17900 levels.
Banknifty
Banknifty opened on a flat note but selling led the index downwards to end in red. On 17th May, Banknifty closed at 43699 with a loss of 205 points.
On the daily chart the index has formed a bearish candle with a lower shadow indicating buying at lower levels. The index continues to move in a higher top and higher bottom formation on the daily chart indicating positive bias in a medium term. The chart pattern suggests that if Nifty crosses and sustains above 43850 level it would witness buying which would lead the index towards 44000-44100 levels. Important Supports for the day is around 43600 however if index sustains below 43600 then it may witness profit booking which would take the index towards 43500-43400 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 has turned negative from the overbought territory and is below its reference line indicating profit booking in a short term.
The trend deciding level for the day is 43715. If BANK NIFTY trades above this level then we may witness a further rally up to 43980-44260-44525 levels. However, if BANK NIFTY trades below 43715 levels then we may see some profit booking initiating in the market, which may correct up to 43430-43165-42885 levels.
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