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Nifty

Nifty opened on a flat note and buying momentum throughout the session let it close near the day's high. Nifty closed at 19497 on 06th July with a gain of 99 points.

On the daily chart index has formed a bullish candle forming higher High-low compared to previous session indicating positive bias. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 19550 level it would witness buying which would lead the index towards 19600-19700 levels. Important Support for the day is around 19450 However if index sustains below 19450 then it may witness profit booking which would take the index towards 19400-19300 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 moving upwards and is above its reference line indicating positive bias.

The trend deciding level for the day is 19460. If NIFTY trades above this level then we may witness a further rally up to 19550-19600-19690 levels. However, if NIFTY trades below 19460 levels then we may see some profit booking initiating in the market, which may correct up to 19410-19320-19270 levels.

Banknifty

Banknifty opened lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels helped the index to close on a positive note. Banknifty closed at 45340 on 06th July with a gain of 188 points.

On the daily chart the index has formed a bullish 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 Nifty crosses and sustains above 45500 level it would witness buying which would lead the index towards 45600-45700 levels. Important Support for the day is around 45200 However if index sustains below 45200 then it may witness profit booking which would take the index towards 45000-44900 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 continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 45265. If BANK NIFTY trades above this level then we may witness a further rally up to 45490-45640-45865 levels. However, if BANK NIFTY trades below 45265 levels then we may see some profit booking initiating in the market, which may correct up to 45115-44890-44740 levels.

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