The index is holding above the crucial support zone of 17300 - Axis Securities
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Nifty
Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 17451 with a gain of 147 points. On the daily chart index has formed a bullish candle forming higher High-low compared to previous session indicating positive bias. The index is holding above the crucial support zone of 17300 which is a confluence of 200 SMA, Budget day low and bullish gap area. The chart pattern suggests that if Nifty crosses and sustains above 17500 levels it would witness buying which would lead the index towards 17600-17700 levels. Important Support for the day is around 17400 However if index sustains below 17400 then it may witness profit booking which would take the index towards 17300-17200 levels. Nifty is trading above the 200 day SMA indicating positive bias in the short to 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 above its reference line. Sustaining above its reference line will turn bias positive. The trend deciding level for the day is 17420. If NIFTY trades above this level then we may witness a further rally up to 17495-17545-17620 levels. However, if NIFTY trades below 17420 levels then we may see some profit booking initiating in the market, which may correct up to 17375-17300-17250 levels.
Banknifty
Banknifty opened with an upward gap and remained in positive terrain throughout the day. Banknifty closed at 40698 with a gain of 429 points. On the daily chart index has formed a bullish candle and has formed a higher High-Low formation indicating positive bias. The index is holding above the previous swing low around 39500 level. The chart pattern suggests that if Nifty crosses and sustains above 40800 level it would witness buying which would lead the index towards 41000-41200 levels. Important Support for the day is around 40500 However if index sustains below 40500 then it may witness profit booking which would take the index towards 40350-40200 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 has turned positive from oversold and is above its reference line indicating sustained strength The trend deciding level for the day is 40590. If BANK NIFTY trades above this level then we may witness a further rally up to 40835-40970-41220 levels. However, if BANK NIFTY trades below 40590 levels then we may see some profit booking initiating in the market, which may correct up to 40450-40205-40070 levels
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