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Nifty

Nifty opened sharply lower with a downward gap and extended buying momentum in the first half however we witnessed profit booking in the later half of the day.. Nifty closed at 15691 with a loss of 76 points.

On the daily chart the index has formed a small Bullish candle with upper shadow indicating selling pressure as well as resistance at higher levels. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 15750 level it would witness buying which would lead the index towards 15900-16100 levels. However if index breaks below 15600 level it would witness selling which would take the index towards 15500-15400. Nifty is approaching its 20-day MA and a bounce from the same may show some buying interest. Nifty 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 overbought territory and is below its reference line indicating sustained downtrend. The trend deciding level for the day is 15695. If NIFTY trades above this level then we may witness a further rally up to 15770-15845-15920 levels. However, if NIFTY trades below 15695 levels then we may see some profit booking initiating in the market, which may correct up to 15615-15540-15465 levels

Banknifty

Banknifty opened sharply lower with a downward gap and extended buying momentum in the first half however we witnessed profit booking in the later half of the day.. Banknifty closed at 34605 with a loss of 398 points.

.On the daily chart the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance at higher levels. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Banknifty crosses and sustains above 35000 level it would witness buying which would lead the index towards 35400-35800 levels. Important Supports for the day is around 34000 However if index sustains belwo 34000 then it may witness profit booking which would take the index towards 33600-33200 levels.. Banknifty is trading below 20 day SMA indicating negative 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 strength indicator RSI has turned negative from the overbought territory and is below its reference line indicating sustained downtrend.

The trend deciding level for the day is 34650. If BANK NIFTY trades above this level then we may witness a further rally up to 34840-35075-35265 levels. However, if BANK NIFTY trades below 34650 levels then we may see some profit booking initiating in the market, which may correct up to 34415-34225-33990 levels

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