The chart pattern suggests that if Nifty crosses and sustains above 14600 level - Axis Securities
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Nifty
Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 14505 with a gain of 194 points. On the daily chart index has formed a bullish candle however it remained restricted within previous session's High-Low range indicating absence of strength on eitherside. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias.
The chart pattern suggests that if Nifty crosses and sustains above 14600 level it would witness buying which would lead the index towards 14700-14800 levels. However if index breaks below 14400 level it would witness selling which would take the index towards 14200-14000. Nifty is trading below 20 day SMA indicating negative bias in the short to medium term. Nifty 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 is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 14435. If NIFTY trades above this level then we may witness a further rally up to 14600-14690-14850 levels. However, if NIFTY trades below 14435 levels then we may see some profit booking initiating in the market, which may correct up to 14345-14180-14090 levels
Banknifty
Banknifty opened with an upward gap and remained in positive terrain throughout the day. Banknifty closed at 31772 with a gain of 980 points. On the daily chart index has formed a bullish candle and has closed above previous session's close indicating signs of short-covering..
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 31800 level it would witness buying which would lead the index towards 32200-32500 levels.
Important Supports for the day is around 31300 However if index sustains belwo 31300 then it may witness profit booking which would take the index towards 30800-30300 levels.. Banknifty is trading below 20 and 50 day SMA's which indicating negative bias in the short 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 is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 31460. If BANK NIFTY trades above this level then we may witness a further rally up to 32195-32625-33360 levels. However, if BANK NIFTY trades below 31460 levels then we may see some profit booking initiating in the market, which may correct up to 31035-30295-29870 levels
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