The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend - Axis Securities
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Nifty
Nifty opened with a downward gap but witnessed buying from the opening tick to end positive. Nifty closed at 17564 with a gain of 52 points.
On the daily chart index has formed a bullish candle which almost engulfed the previous session representing positive bias ahead. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 17600 level it would witness buying which would lead the index towards 17700-17800 levels. Important support for the day is around 17500 However if index sustains below 17500 then it may witness profit booking which would take the index towards 17400-17300 levels.. Nifty is trading above 20, 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 upwards and is above its reference line indicating positive bias.
The trend deciding level for the day is 17525. If NIFTY trades above this level then we may witness a further rally up to 17625-17685-17790 levels. However, if NIFTY trades below 17525 levels then we may see some profit booking initiating in the market, which may correct up to 17460-17360-17300 levels.
Banknifty.
Banknifty opened with a downward gap and traded with extreme volatility on either side. Banknifty closed at 40100 with a loss of 274 points.
On the daily chart the index has formed a Bearish candle with a lower shadow indicating buying at lower levels. 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 40300 level it would witness buying which would lead the index towards 40500-40700 levels. Important support for the day is around 40000 However if index sustains below 40000 then it may witness profit booking which would take the index towards 39800-38600 levels.. Banknifty is sustaining above its 20, 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 upwards and is above its reference line indicating positive bias.
The trend deciding level for the day is 17525. If NIFTY trades above this level then we may witness a further rally up to 17625-17685-17790 levels. However, if NIFTY trades below 17525 levels then we may see some profit booking initiating in the market, which may correct up to 17460-17360-17300 levels
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