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Nifty

Nifty opened on a positive note and extended buying momentum in the initial hour however selling pressure at higher levels dragged index lower to close near the day's low. Nifty closed at 16521 with a gain of 180 points. On the daily chart the index has formed a bearish candle with an upper shadow indicating selling pressure as well as resistance at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating an up trend. The chart pattern suggests that if Nifty crosses and sustains above 16600 level it would witness buying which would lead the index towards 16700-16800 levels. However if index breaks below 16450 level it would witness selling which would take the index towards 16350-16200. Nifty is trading above its 20 and 50 day SMA which indicates positive bias in the short 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 is moving upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 16535. If NIFTY trades above this level then we may witness a further rally up to 16575-16630-16675 levels. However, if NIFTY trades below 16535 levels then we may see some profit booking initiating in the market, which may correct up to 16480-16435-16380 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 35972 with a gain of 252 points. On the daily chart the index has formed a bearish candle with upper shadow indicating selling pressure as well as resistance at higher 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 36000 level it would witness buying which would lead the index towards 36200-36500 levels. However if the index breaks below 35800 level it would witness selling which would take the index towards 35500-35300. Banknifty is trading above 20, 50 and 100 day SMA's indicating positive bias in the short to medium term. Banknifty continues to remain in an uptrend in the short 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 36010. If BANK NIFTY trades above this level then we may witness a further rally up to 36145-36315-36450 levels. However, if BANK NIFTY trades below 36010 levels then we may see some profit booking initiating in the market, which may correct up to 35840-35705-35530 levels.

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