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Nifty

Nifty opened lower with a downward gap and remained lackluster within a narrow trading range throughout the session. Nifty closed at 18123 with a loss of 10 points.

On the daily chart the index has formed a small Bullish candle with upper shadow indicating selling pressure as well as resistance near a small downward sloping trendline from the 18700 level. The index is holding above the bullish gap area of 17800 level however 18200 is crucial to watch out for on a closing basis for positive momentum to continue.. The chart pattern suggests that if Nifty crosses and sustains above 18200 level it would witness buying which would lead the index towards 18300-18400 levels. Important Support for the day is around 18100 However if index sustains below 18100 then it may witness profit booking which would take the index towards 18000-17900 levels. Nifty is trading above longer term averages of 100 & 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 continues to remain flat and is below its reference line indicating absence of momentum on either side

The trend deciding level for the day is 18120. If NIFTY trades above this level then we may witness a further rally up to 18175-18225-18280 levels. However, if NIFTY trades below 18120 levels then we may see some profit booking initiating in the market, which may correct up to 18070-18015-17965 levels.

Banknifty

Banknifty opened with a downward gap and traded lackluster on either side to close on flat note. Banknifty closed at 42828 with a loss of 32 points.

On the daily chart the index has formed a small Bullish candle with upper shadow indicating selling pressure near small downward sloping trend line form 44150 which is placed at 43035 level. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 43000 level it would witness buying which would lead the index towards 43200-43400 levels. Important Support for the day is around 42700 However if index sustains below 42700 then it may witness profit booking which would take the index towards 42600-42400 levels.. Banknifty is sustaining above its 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 continues to remain flat and is below its reference line indicating absence of momentum on either side.

The trend deciding level for the day is 42855. If BANK NIFTY trades above this level then we may witness a further rally up to 43010-43195-43350 levels. However, if BANK NIFTY trades below 42855 levels then we may see some profit booking initiating in the market, which may correct up to 42670-42510-42330 levels

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