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Nifty

Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 15639 with a gain of 289 points. On the daily chart index has formed a bullish candle and has closed above its previous session's high representing positive bias ahead. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 15700 level it would witness buying which would lead the index towards 15800-15900 levels. However if the index breaks below 15600 level it would witness selling which would take the index towards 15500-15400. Nifty is trading below 20 day SMA indicating negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI has turned positive from the oversold territory and is above its reference line indicating positive bias. The trend deciding level for the day is 15590. If NIFTY trades above this level then we may witness a further rally up to 15755-15875-16045 levels. However, if NIFTY trades below 15590 levels then we may see some profit booking initiating in the market, which may correct up to 15470-15300-15185 levels.

Bank Nifty

Banknifty opened with a downward gap however buying support at lower levels pulled the index to end on a positive note. Banknifty closed at 33192 with a gain of 507 points. On the daily chart the index has formed a small Bullish candle with upper shadow indicating selling pressure as well as resistance at higher levels. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 33300 level it would witness buying which would lead the index towards 33600-34000 levels. However if index breaks below 33000 level it would witness selling which would take the index towards 32800-32600. Banknifty is trading below 20, 50, 100 and 200 day SMA indicating negative bias in the short to medium term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI has turned positive from oversold and is above its reference line indicating sustained strength. The trend deciding level for the day is 33195. If BANK NIFTY trades above this level then we may witness a further rally up to 33590-33990-34385 levels. However, if BANK NIFTY trades below 33195 levels then we may see some profit booking initiating in the market, which may correct up to 32795-32400-32000 levels.

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