IGI Logo

Nifty

Nifty opened with a downward gap and selling pressure throughout the session led it to close on a negative note. Nifty closed at 18160 with a loss of 148 points.

On the daily chart the index has formed a small Bearish candle forming lower High-Low compared to previous session indicating negative bias. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend in the 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 a profit booking.

The trend deciding level for the day is 18185. If NIFTY trades above this level then we may witness a further rally up to 18235-18315-18365 levels. However, if NIFTY trades below 18185 levels then we may see some profit booking initiating in the market, which may correct up to 18110-18055-17980 levels

Banknifty

Banknifty opened with a downward gap and traded with extreme volatility on either side to close on a negative note. Banknifty closed at 42347 with a loss of 91 points.

On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a medium term uptrend. The chart pattern suggests that if Banknifty crosses and sustains above 42500 level it would witness buying which would lead the index towards 42700-42900 levels. Important Support for the day is around 42200 However if index sustains below 42200 then it may witness profit booking which would take the index towards 42000-41800 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 a profit booking.

The trend deciding level for the day is 42310. If BANK NIFTY trades above this level then we may witness a further rally up to 42420-42495-42605 levels. However, if BANK NIFTY trades below 42310 levels then we may see some profit booking initiating in the market, which may correct up to 42235-42130-42055 levels

To Read Complete Report & Disclaimer Click Here
 

For More Axis Securities Disclaimer  https://simplehai.axisdirect.in/disclaimer-home

SEBI Registration number is INZ000161633

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer