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Nifty

Nifty opened on a flat note however profit booking for most part of the session led the index downwards to end in red. Nifty closed at 17771 with a loss of 86 points..

On the daily chart the index has formed a bearish candle and has closed below previous session's low indicating negative bias. The index is holding above a lower band of falling channel from the all-time high of 18887 which also confluences with 200 SMA placed at 17317 level and a gap area around 17328-17434. On the higher side, 18000 will act as the crucial resistance level to watch out which is the upper band of the falling channel. The chart pattern suggests that if Nifty crosses and sustains above 17800 level it would witness buying which would lead the index towards 17900-18000 levels. Important Support for the day is around 17700 However if index sustains below 17700 then it may witness profit booking which would take the index towards 17600-17500 levels.. Nifty is trading above longer term averages of 200 SMA indicating positive bias in the medium term. Nifty continues to remain in an uptrend for the medium term, so buying on dips continues to be our preferred strategy.

The daily strength indicator RSI is at a verge of crossover below its reference line. Sustaining below its reference line indicating a profit booking.

The trend deciding level for the day is 17790. If NIFTY trades above this level then we may witness a further rally up to 17860-17950-18020 levels. However, if NIFTY trades below 17790 levels then we may see some profit booking initiating in the market, which may correct up to 17700-17630-17540 levels.

Banknifty

Banknifty opened on a flat note but selling led the index downwards to end in red. Banknifty closed at 41282 with a loss of 277 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 is finding a resistance at 20 daily SMA placed at 41587 which is acting as a crucial resistance for a short term. The chart pattern suggests that if Nifty crosses and sustains above 41400 level it would witness buying which would lead the index towards 41500-41700 levels. Important Support for the day is around 41200 However if index sustains below 41200 then it may witness profit booking which would take the index towards 41000-40800 levels.. Banknifty is trading above its 200 day SMA which indicates positive bias in the 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 is at a verge of crossover below its reference line. Sustaining below its reference line indicating a profit booking.

The trend deciding level for the day is 41370. If BANK NIFTY trades above this level then we may witness a further rally up to 41575-41870-42080 levels. However, if BANK NIFTY trades below 41370 levels then we may see some profit booking initiating in the market, which may correct up to 41075-40865-40570 levels

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