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Nifty

Nifty opened sharply lower with a downward gap and traded with extreme volatility throughout the session to close on a negative note. Nifty closed at 17325 with a loss of 43 points.

On the daily chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. Since past 10-12 sessions index continue to consolidate in a broad trading range (17600-16800) representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 17350 level it would witness buying which would lead the index towards 17450-17550 levels. However if index breaks below 17200 level it would witness selling which would take the index towards 17100-17000. Nifty is trading below 20, 50 day SMA indicating negative bias in the short to medium term. Since past four weeks Nifty continues to remain in a consolidation within 17600-16800 indicating sideways trend and hence any either side breakout will signal direction.

The daily strength indicator RSI continues to remain flat and is above its reference line indicating lack of strength.

The trend deciding level for the day is 17310. If NIFTY trades above this level then we may witness a further rally up to 17390-17460-17545 levels. However, if NIFTY trades below 17310 levels then we may see some profit booking initiating in the market, which may correct up to 17240-17160-17090 levels.

Banknifty

Banknifty opened with a downward gap and traded with extreme volatility on either side to close on flat note. Banknifty closed at 36894 with a loss of 31 points.

On the daily chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. Since past four weeks, the index continues to consolidate in a broad trading range (37700-35500) representing sideways trend. The chart pattern suggests that if Banknifty crosses and sustains above 37000 level it would witness buying which would lead the index towards 37300-37600 levels. However if index breaks below 36700 level it would witness selling which would take the index towards 36500- 36000. Banknifty is trading above its 200 day SMA (35723) which indicates positive bias in the short term. Since past four weeks, banknifty continues to consolidate within 37700-35500 representing sideways trend and hence any either side breakout will indicate further direction.

The daily strength indicator RSI continues to remain flat and is above its reference line indicating lackluster movement.

The trend deciding level for the day is 36825. If BANK NIFTY trades above this level then we may witness a further rally up to 37105-37320-37600 levels. However, if BANK NIFTY trades below 36825 levels then we may see some profit booking initiating in the market, which may correct up to 36615-36330-36120 levels.

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