The chart pattern suggests that if Nifty crosses and sustains above 43100 level - Axis Securities
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Nifty
Nifty opened on a flat note however profit booking for most part of the session led the index downwards to end in red. Nifty closed at 18043 with a loss of 190 points.
On the daily chart the index has formed a sizable bearish candle and has closed below previous session's low as well as engulfed the last two previous session's candle indicating negative bias. The index had broken below a small rising channel which was in is forming from a 17800 gap area. The chart pattern suggests that if Nifty crosses and sustains above 18100 level it would witness buying which would lead the index towards 18200-18300 levels. Important Support for the day is around 18000 However if index sustains below 18000 then it may witness profit booking which would take the index towards 17900-17800 levels. Nifty is trading above longer term averages of 100 & 200 SMA indicating positive bias in medium term. However the index is trading below 20 & 50 SMA indicating weakness in the short term.. Nifty continues to remain in an uptrend for the medium term, so buying on dips continues to be our preferred strategy.
The daily strength indicator RSI is moving downwards from the 50 level mark and is quoting below its reference line indicating profit booking in a short term.
The trend deciding level for the day is 18100. If NIFTY trades above this level then we may witness a further rally up to 18185-18325-18405 levels. However, if NIFTY trades below 18100 levels then we may see some profit booking initiating in the market, which may correct up to 17960-17880-17740 levels.
Banknifty
Banknifty opened on a flat note but selling led the index downwards to end in red. Banknifty closed at 42959 with a loss of 466 points.
On the daily chart the index has formed a "bearish engulfing" candle after facing major resistance near the 43600 levels indicating profit booking at higher levels. The index broke below a small rising channel indicating weakness in a short term. The chart pattern suggests that if Nifty crosses and sustains above 43100 level it would witness buying which would lead the index towards 43300-43500 levels. Important Supports for the day is around 42800 However if index sustains below 42800 then it may witness profit booking which would take the index towards 42600-42400 levels.. Banknifty is sustaining above its 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 50 level mark and is below its reference line indicating profit booking in a short term.
The trend deciding level for the day is 43130. If BANK NIFTY trades above this level then we may witness a further rally up to 43405-43850-44125 levels. However, if BANK NIFTY trades below 43130 levels then we may see some profit booking initiating in the market, which may correct up to 42685-42410-41965 levels.
To Read Complete Report & Disclaimer Click Here
For More Axis Securities Disclaimer https://simplehai.axisdirect.in/disclaimer-home
SEBI Registration number is INZ000161633
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer
