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Nifty

Nifty opened on a positive note and traded with extreme volatality throughout the session. Nifty closed at 18701 with a gain of 5 points.

On the daily chart the index has formed a small bearish candle with a long lower shadow indicating buying support at lower levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 18800 level it would witness buying which would lead the index towards 18900-19000 levels. Important Support for the day is around 18600 However if index sustains below 18600 then it may witness profit booking which would take the index towards 18500- 18400 levels.. Nifty is trading above 20, 50, 100 and 200 day SMA indicating positive bias in the short to 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 continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 18675. If NIFTY trades above this level then we may witness a further rally up to 18755-18810-18895 levels. However, if NIFTY trades below 18675 levels then we may see some profit booking initiating in the market, which may correct up to 18620-18535-18480 levels

Banknifty

Banknifty opened with an upward gap and witnessed selling for the first part of the session. However pullback action pulled the index higher and it closed on a positive note. Banknifty closed at 43333 with a gain of 229 points.

On the daily chart the index has formed a Bullish candle with a lower shadow indicating buying at lower levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 43500 level it would witness buying which would lead the index towards 43700-43900 levels. Important Support for the day is around 43150 However if index sustains below 43150 then it may witness profit booking which would take the index towards 43000-42800 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 is moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 43230. If BANK NIFTY trades above this level then we may witness a further rally up to 43475-43615-43860 levels. However, if BANK NIFTY trades below 43230 levels then we may see some profit booking initiating in the market, which may correct up to 43090-42845-42700 levels

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