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Nifty

Nifty opened sharply lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels recovered some of the earlier losses. Nifty closed at 19527 on 02nd August with a loss of 207 points.

On the daily chart the index has formed a bearish candle with a lower shadow indicating buying at the lower band of the small falling channel. The index is moving in a Lower Top and Higher Bottom formation on the hourly chart indicating profit booking. The chart pattern suggests that if Nifty crosses and sustains above 19600 level it would witness buying which would lead the index towards 19650-19750 levels. Important Support for the day is around 19500 However if index sustains below 19500 then it may witness profit booking which would take the index towards 19400-19300 levels. Nifty is trading above 50, and 100 and 200 day SMA 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 is moving downwards and is quoting below its reference line indicating negative bias in a short term.

The trend deciding level for the day is 19545. If NIFTY trades above this level then we may witness a further rally up to 19660-19795-19915 levels. However, if NIFTY trades below 19545 levels then we may see some profit booking initiating in the market, which may correct up to 19405-19290-19155 levels.

Banknifty

Banknifty opened lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels erased some of the earlier losses. Banknifty closed at 44996 on 02nd August with a loss of 597 points.

On the daily chart the index has formed a bearish candle with either side long shadows indicating extreme volatility at higher levels. The index is moving in a Lower Top and Higher Bottom formation on the hourly chart indicating profit booking. The chart pattern suggests that if Nifty crosses and sustains above 45150 level it would witness buying which would lead the index towards 45300-45400 levels. Important Support for the day is around 44800 However if index sustains below 44800 then it may witness profit booking which would take the index towards 44700-44600 levels. Banknifty is sustaining above its 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 negative bias in a short term.

The trend deciding level for the day is 45040. If BANK NIFTY trades above this level then we may witness a further rally up to 45360-45725-46045 levels. However, if BANK NIFTY trades below 45040 levels then we may see some profit booking initiating in the market, which may correct up to 44675-44355-43990 levels.

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