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Nifty

Nifty opened with an upward gap and buying momentum throughout the session led it to close on a strong note. Nifty closed at 16930 with a gain of 288 points. On the daily chart index has formed a bullish candle and has surpassed past three month’s multiple resistance zone of 16800 on a closing basis indicating positive bias. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating an uptrend. The chart pattern suggests that if Nifty crosses and sustains above 17000 levels it would witness buying which would lead the index towards 17100-17200 levels. However if index breaks below 16850 level it would witness selling which would take the index towards 16750-16700. Nifty is trading above its 20, 50 and 100 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 16875. If NIFTY trades above this level then we may witness a further rally up to 17005-17075-17205 levels. However, if NIFTY trades below 16875 levels then we may see some profit booking initiating in the market, which may correct up to 16800-16675-16600 levels.

Banknifty

Banknifty opened with an upward gap and remained in positive terrain throughout the day. Bank nifty closed at 37378 with a gain of 594 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 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 37450 level it would witness buying which would lead the index towards 37700-38000 levels. However if index breaks below 37200 level it would witness selling which would take the index towards 37000-36800. Banknifty is trading above 20, 50, 100 and 200 day SMA 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 37275. If BANK NIFTY trades above this level then we may witness a further rally up to 37520-37660-37905 levels. However, if BANK NIFTY trades below 37275 levels then we may see some profit booking initiating in the market, which may correct up to 37135-36890-36745 levels.

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