BANK NIFTY trades above this level, we may witness a further rally up to 43705-43795-43940 levels - Axis securities Ltd
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Nifty
Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 19412 on 6th November with a gain of 181 points.
On the daily chart, the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. The index continues to move in a higher top and higher bottom formation on the hourly chart, indicating a positive bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 19450 level, it would witness buying, leading the index towards 19500-19600 levels. Important support for the day is around 19350. However, if the index sustains below 19350, it may witness profit booking, taking the index towards 19300-19200 levels. Nifty is trading above its 20 and 200 day SMA, indicating a 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 a positive bias.
The trend-deciding level for the day is 19380. If NIFTY trades above this level, we may witness a further rally up to 19455-19495-19565 levels. However, if NIFTY trades below 19380 levels, we may see some profit booking initiating in the market, which may correct up to 19340-19270-19225 levels.
Banknifty
Bank Nifty opened with an upward gap and remained in positive terrain throughout the day. Bank Nifty closed at 43619 on 06th November, gaining 301 points.
On the daily chart, the index has formed a bullish candle with higher high-low compared to the previous session, indicating a positive bias. The index continues to move in a higher top and higher bottom formation on the hourly chart, indicating a positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 43700 level, it would witness buying, leading the index towards 43850-43950 levels. Important support for the day is around 43500. However, if the index sustains below 43500, it may witness profit booking, taking the index towards 43300-43200 levels. Bank Nifty is trading above its 20 and 200-day SMA, indicating a positive bias in the short term. Bank 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 a positive bias.
The trend-deciding level for the day is 43560. If BANK NIFTY trades above this level, we may witness a further rally up to 43705-43795-43940 levels. However, if BANK NIFTY trades below 43560 levels, we may see some profit booking initiating in the market, which may correct up to 43475-43330-43240 levels.
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