The chart pattern suggests that if Nifty crosses and sustains above 18700 level - Axis Securities
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Nifty
Nifty opened on a flat note however profit booking for most part of the session led the index downwards to end in red. On 8th June, Nifty closed at 18635 with a loss of 92 points.
On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure as well as resistance at higher levels. The index continues to move in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias in a medium term. The chart pattern suggests that if Nifty crosses and sustains above 18700 level it would witness buying which would lead the index towards 18750-18850 levels. Important Support for the day is around 18550 However if index sustains below 18550 then it may witness profit booking which would take the index towards 18500-18400 levels. Nifty is trading above 20, 50, 100 and 200 day SMA indicating positive bias in the short to medium 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 at a verge of crossover below its reference line. Sustaining below its reference line will indicate profit booking.
The trend deciding level for the day is 18675. If NIFTY trades above this level then we may witness a further rally up to 18735-18840-18900 levels. However, if NIFTY trades below 18675 levels then we may see some profit booking initiating in the market, which may correct up to 18575-18515-18410 levels.
Banknifty
Banknifty opened with a downward gap and selling pressure throughout the session led it to close near day's low. On 8th June, Banknifty closed at 43995 with a loss of 280 points.
On the daily chart the index has formed a bearish candle with a long 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 medium term up trend. The chart pattern suggests that if Nifty crosses and sustains above 44150 level it would witness buying which would lead the index towards 44250-44400 levels. Important Support for the day is around 43900 However if index sustains below 43900 then it may witness profit booking which would take the index towards 43800-43600 levels.. Banknifty is sustaining above its 20, 50, 100 and 200- day SMA which signals bullish sentiments in near 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 has turned negative from the overbought territory and is below its reference line indicating profit booking.
The trend deciding level for the day is 44125. If BANK NIFTY trades above this level then we may witness a further rally up to 44330-44665-44870 levels. However, if BANK NIFTY trades below 44125 levels then we may see some profit booking initiating in the market, which may correct up to 43790-43585-43250 levels
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