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Nifty

Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Nifty closed at 15832 with a gain of 133 points. On the daily chart, the index has formed a small bearish candle however it closed above previous session's high indicating positive bias. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 15900 level it would witness buying which would lead the index towards 16000-16200 levels. However if the index breaks below 15800 level it would witness selling which would take the index towards 15700-15600. 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 15860. If NIFTY trades above this level then we may witness a further rally up to 15900-15970-16015 levels. However, if NIFTY trades below 15860 levels then we may see some profit booking initiating in the market, which may correct up to 15790-15745-15675 levels.

Bank Nifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a flat note. Banknifty closed at 33811 with a gain of 184 points. On the daily chart, the index has formed a bearish candle however it continues to form a higher High-Low compared to previous session which remains a positive sign. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Banknifty crosses and sustains above 34000 level it would witness buying which would lead the index towards 34200-34700 levels. However if index breaks below 33700 level it would witness selling which would take the index towards 33400-33200. 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 33900. If BANK NIFTY trades above this level then we may witness a further rally up to 34060-34310-34475 levels. However, if BANK NIFTY trades below 33900 levels then we may see some profit booking initiating in the market, which may correct up to 33650-33485-33235 levels.

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