On the daily chart, the index has formed a sizable bullish candle and closed above its previous session's high - Axis Securities
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Nifty
Nifty opened flat, but buying momentum prevailed throughout the session, allowing it to close near the day's high. Nifty closed at 19727 on 07th September with a gain of 116 points.
On the daily chart, the index has formed a sizable bullish candle and closed above its previous session's high, indicating a positive bias going forward. The index also maintains a higher top and higher bottom formation on the hourly chart, reinforcing the positive bias. According to the chart pattern, if Nifty crosses and sustains above the 19,800 level, it is likely to attract buying interest, potentially driving the index towards the 19,900-20,000 levels. Important support for the day can be found around the 19,600 level. However, if the index sustains below 19,650, it may experience profit booking, potentially leading the index down to the 19,550-19,450 levels. Nifty is currently trading above its 20-day, 50-day, 100-day, and 200-day SMAs, indicating a positive bias in the short to medium term. Overall, Nifty remains in an uptrend for the short term, making buying on dips the preferred strategy.
The daily strength indicator RSI has turned positive after being in oversold territory and is now above its reference line, further indicating a positive bias.
The trend deciding level for the day is 19670. If NIFTY trades above this level then we may witness a further rally up to 19795-19860-19980 levels. However, if NIFTY trades below 19670 levels then we may see some profit booking initiating in the market, which may correct up to 19605-19485-19420 levels.
BankNifty
BankNifty opened flat, but buying activity pushed the index higher, resulting in a positive closing. Banknifty closed at 44878 on 07th September with a gain of 469 points.
On the daily chart, the index formed a substantial bullish candle and closed above the previous session's high, suggesting a positive bias in the near term. Furthermore, the index closed above the upper band of a symmetrical triangular pattern, and if it maintains this position, it may be heading towards 45,300, which corresponds to the 61.8% Fibonacci retracement level of the fall from 46,310 till 43,600. The chart pattern indicates that if BankNifty crosses and sustains above the 45,000 level, it could attract buying interest and potentially drive the index towards the 45,100-45,200 levels. Key support for the day is around the 44,700 level. However, if the index remains below 44,700, it may experience profit booking, potentially taking it down to the 44,600-44,500 levels. BankNifty is currently trading above its 20-day, 100-day, and 200-day SMAs, indicating bullish sentiments in the near term. Overall, BankNifty remains in an uptrend for the medium term, making buying on dips the preferred strategy.
The daily strength indicator RSI is moving upward and is above its reference line, reinforcing the positive bias in the index.
The trend deciding level for the day is 44710. If BANK NIFTY trades above this level then we may witness a further rally up to 45080-45285-45655 levels. However, if BANK NIFTY trades below 44710 levels then we may see some profit booking initiating in the market, which may correct up to 44510-44135-43935 levels.
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