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Nifty

Nifty opened sharply lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels recovered some of the earlier losses. Nifty closed at 19382 on 03rdAugust with a loss of 145 points. On the daily chart the index has formed a bearish candle with either side long shadows indicating extreme volatility.

The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating profit booking. The chart pattern suggests that if Nifty crosses and sustains above 19450 level it would witness buying which would lead the index towards 19550-19650 levels. Important Support for the day is around 19300 However if index sustains below 19300 then it may witness profit booking which would take the index towards 19250-19150 levels. Nifty is trading above 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 downwards and is quoting below its reference line indicating profit booking. The trend deciding level for the day is 19405. If NIFTY trades above this level then we may witness a further rally up to 19515-19645-19755 levels. However, if NIFTY trades below 19405 levels then we may see some profit booking initiating in the market, which may correct up to 19275-19165-19030 levels.

Bank Nifty

Bank nifty opened lower with a downward gap and extended selling momentum in the first half however buying momentum at lower levels erased some of the earlier losses. Banknifty closed at 44513 on 03rd August with a loss of 482 points. On the daily chart, the index has formed a bearish candle forming lower High-Low compared to previous session and has also closed below previous session's low indicating further weakness. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating profit booking.

The chart pattern suggests that if Nifty crosses and sustains above 44700 level it would witness buying which would lead the index towards 44800-44900 levels. Important Support for the day is around 44400 However if index sustains below 44400 then it may witness profit booking which would take the index towards 44350-44200 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 is moving downwards and is quoting below its reference line indicating profit booking. The trend deciding level for the day is 19405. If NIFTY trades above this level then we may witness a further rally up to 19515-19645-19755 levels. However, if NIFTY trades below 19405 levels then we may see some profit booking initiating in the market, which may correct up to 19275-19165-19030 levels

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