The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating an up trend - Axis Securities
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Nifty
Nifty opened with an upward gap and buying momentum throughout thes session led it to close on a strong note. Nifty closed at 17825 with a gain of 127 points.
On the daily chart index has formed a small bullish candle and has closed above its previous session's high representing positive bias ahead.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 17850 level it would witness buying which would lead the index towards 17900-18000 levels. However if index breaks below 17750 level it would witness selling which would take the index towards 17700-17600. Nifty is trading above its 50 , 100 and 200 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 upwards and is above its reference line indicating positive bias.
The trend deciding level for the day is 17810. If NIFTY trades above this level then we may witness a further rally up to 17855-17885-17930 levels. However, if NIFTY trades below 17810 levels then we may see some profit booking initiating in the market, which may correct up to 17780-17735-17705 levels.
Banknifty
Banknifty opened with an upward gap and formed shadows on either side indicating lack of bullish confidence amongst participants. Banknifty closed at 39240 with a gain of 197 points.
On the daily chart the index has formed a small bearish candle with either side long shadows indicating extreme volatility at higher 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 39300 level it would witness buying which would lead the index towards 39500-40000 levels. However if the index breaks below 39100 level it would witness selling which would take the index towards 39000-38700. Banknifty is trading above 20, 50 , 100 and 200 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 39270. If BANK NIFTY trades above this level then we may witness a further rally up to 39415-39595-39740 levels. However, if BANK NIFTY trades below 39270 levels then we may see some profit booking initiating in the market, which may correct up to 39090-38945-38765 levels.
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