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Nifty

Nifty opened with an upward gap and witnessed selling for the first part of the session. However, buying momentum at lower levels pulled the index higher to close near the day's high. Nifty closed at 18015 with a gain of 208 points.

The daily price action has formed a sizable bullish candle and has also formed an "engulfing bullish" - a trend reversal pattern. However any follow up positive close will confirm the pattern. The index continues to move in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. 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. However if the index breaks below 17900 level it would witness selling which would take the index towards 17800-17700. Nifty has bounced from the 100-day SMA indicating strength in near 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 17960. If NIFTY trades above this level then we may witness a further rally up to 18140-18270-18450 levels. However, if NIFTY trades below 17960 levels then we may see some profit booking initiating in the market, which may correct up to 17830-17650-17520 levels.

Bank Nifty

Bank nifty opened with an upward gap and remained in positive terrain throughout the day. Bank nifty closed at 42630 with a gain of 962 points.

On the daily chart index has formed a bullish candle and has closed above its previous session's high representing positive bias ahead. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating a short term up trend. The chart pattern suggests that if Bank nifty crosses and sustains above 42900 level it would witness buying which would lead the index towards 43300-43500 levels. However if index breaks below 42400 level it would witness selling which would take the index towards 42200-42000. Bank nifty is sustaining above its 50, 100 and 200- day SMA which signals bullish sentiments in near term. Bank nifty continues to remain in an uptrend in the short 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 42350. If BANK NIFTY trades above this level then we may witness a further rally up to 43130-43625-44405 levels. However, if BANK NIFTY trades below 42350 levels then we may see some profit booking initiating in the market, which may correct up to 41850-41070-40575 levels.

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