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Nifty

Nifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Nifty closed at 15967 with a loss of 92 points. On the daily chart, the index has formed a bearish candle forming lower High-Low and has also closed below previous session low indicating further weakness. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating an up trend. The chart pattern suggests that if Nifty crosses and sustains above 16050 level it would witness buying which would lead the index towards 16100-16200 levels. However if the index breaks below 15900 level it would witness selling which would take the index towards 15800-15700. Nifty is trading above its 20 day SMA which indicates positive bias in the short 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 16020. If NIFTY trades above this level then we may witness a further rally up to 16090-16210-16280 levels. However, if NIFTY trades below 16020 levels then we may see some profit booking initiating in the market, which may correct up to 15900-15830-15710 levels.

Bank Nifty

Banknifty opened with a downward gap and selling pressure throughout the session led it to close in negative terrain. Banknifty closed at 34828 with a loss of 304 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 moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 34900 level it would witness buying which would lead the index towards 35000-35300 levels. However if the index breaks below 34700 level it would witness selling which would take the index towards 34500-34200. Banknifty is trading above 20 and 50 day SMA indicating positive bias in the short to medium term. Banknifty continues to remain in an uptrend in the short term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI is moving upwards and is above its reference line indicating positive bias. The trend deciding level for the day is 34965. If BANK NIFTY trades above this level then we may witness a further rally up to 35170-35515-35720 levels. However, if BANK NIFTY trades below 34965 levels then we may see some profit booking initiating in the market, which may correct up to 34620-34415-34070 levels.

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