On the daily chart the index has formed a small bearish candle with shadows - Axis Securities
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Nifty
Nifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Nifty closed at 18130 with a loss of 52 points.
On the daily chart the index has formed a bearish candle forming lower High-Low compared to previous session indicating negative bias. 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 18200 level it would witness buying which would lead the index towards 18300-18400 levels. Important Support 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 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 has turned negative from the overbought territory and is below its reference line indicating sustained downtrend.
The trend deciding level for the day is 18175. If NIFTY trades above this level then we may witness a further rally up to 18250-18370-18440 levels. However, if NIFTY trades below 18175 levels then we may see some profit booking initiating in the market, which may correct up to 18055-17985-17865 levels.
Banknifty
Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a negetive note. Banknifty closed at 43752 with a gain of 54 points.
On the daily chart the index has formed a small bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. 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 Support 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 continue to remain flat and is below its reference line indicating absence of momentum on either side
The trend deciding level for the day is 43835. If BANK NIFTY trades above this level then we may witness a further rally up to 43995-44240-44400 levels. However, if BANK NIFTY trades below 43835 levels then we may see some profit booking initiating in the market, which may correct up to 43590-43430-43185 levels.
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