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Nifty

Nifty opened with a downward gap but witnessed buying from the opening tick to end positive. Nifty closed at 15850 with a gain of 18 points. On the daily chart index has formed a bullish candle and extended its couple of week’s consolidation indicating a sideways trend. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 15900 level it would witness buying which would lead the index towards 16000-16200 levels. However if the index breaks below 15800 level it would witness selling which would take the index towards 15700-15600. Nifty is trading below 20 day SMA indicating negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI has turned positive from the oversold territory and is above its reference line indicating positive bias. The trend deciding level for the day is 15815. If NIFTY trades above this level then we may witness a further rally up to 15925-16000-16105 levels. However, if NIFTY trades below 15815 levels then we may see some profit booking initiating in the market, which may correct up to 15745-15635-15560 levels.

Bank Nifty

Banknifty opened sharply lower with a downward gap and selling pressure throughout the session dragged it lower to close on a negative note. Banknifty closed at 33642 with a loss of 169 points. On the daily chart index has formed a bullish candle however it continues to form lower High-Low compared to previous session indicating negative bias. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Banknifty crosses and sustains above 33800 level it would witness buying which would lead the index towards 34000-34300 levels. However if index breaks below 33500 level it would witness selling which would take the index towards 33300- 33000. Banknifty is trading below 20, 50, 100 and 200 day SMA indicating negative bias in the short to medium term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI has turned positive from oversold and is above its reference line indicating sustained strength. The trend deciding level for the day is 33630. If BANK NIFTY trades above this level then we may witness a further rally up to 33755-33870-34000 levels. However, if BANK NIFTY trades below 33630 levels then we may see some profit booking initiating in the market, which may correct up to 33515-33390-33275 levels.

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