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Nifty

Nifty opened with a downward gap and selling pressure for most part of the session led it to close in red. Nifty closed at 16416 with a loss of 153 points. On the daily chart, the index has formed a sizable bearish candle and closed below previous session low indicating further weakness. 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 16450 levels it would witness buying which would lead the index towards 16500-16600 levels. However if the index breaks below 16300 level it would witness selling which would take the index towards 16200-16100. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 16415. If NIFTY trades above this level then we may witness a further rally up to 16485-16555-16625 levels. However, if NIFTY trades below 16415 levels then we may see some profit booking initiating in the market, which may correct up to 16345-16275-16205 levels.

Bank Nifty

Banknifty opened with a downward gap and traded with extreme volatility on either side to close on a negative note. Banknifty closed at 34996 with a loss of 314 points. On the daily chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. 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 Banknifty crosses and sustains above 35100 level it would witness buying which would lead the index towards 35300-35400 levels. However if the index breaks below 34800 level it would witness selling which would take the index towards 34600-34300. Banknifty is trading above 20 day SMA's indicating positive bias in the short to medium 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 and weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 34995. If BANK NIFTY trades above this level then we may witness a further rally up to 35155-35315-35475 levels. However, if BANK NIFTY trades below 34995 levels then we may see some profit booking initiating in the market, which may correct up to 34835-34675-34515 levels.

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