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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 21239 on 23rd January, marking a loss of 333 points.

On the daily chart, the index has formed a 'bearish engulfing' candlestick pattern, which engulfs the previous three sessions after facing major resistance near the 21800 levels, indicating profit booking at higher levels. The index continues to move in a lower top and lower bottom formation on the hourly chart, indicating a negative bias in the short term. The chart pattern suggests that if Nifty crosses and sustains above the 21400 level, it would witness buying, potentially leading the index towards 21500-21600 levels. The important support for the day is around 21300. However, if the index sustains below 21300, it may witness profit booking, potentially taking the index towards 21200-21000 levels.

Nifty is trading above the 50, 100, and 200-day SMAs, indicating a positive bias in the medium term. Nifty continues to remain in a downtrend in the short term, so exiting on small pullback rallies remains our preferred strategy.

The daily strength indicator RSI is moving downwards and is quoting below its reference line, indicating profit booking. The trend-deciding level for the day is 21395. If NIFTY trades above this level, we may witness a further rally up to 21595-21950-22155 levels. However, if NIFTY trades below 21395 levels, we may see some profit booking initiating in the market, which may correct NIFTY up to 21040-20835-20480 levels

Bank Nifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a negative note. Banknifty closed at 45015 on 23rd January with a loss of 1043 points.

On the daily chart, the index has formed a 'bearish engulfing' candlestick pattern, which engulfs the previous three sessions after facing major resistance near the 46500 levels, indicating profit booking at higher levels. The index continues to move in a lower top and lower bottom formation on the hourly chart, indicating a negative bias. The chart pattern suggests that if Banknifty crosses and sustains above the 45150 level, it would witness buying, leading the index towards 45250-45400 levels. Important supports for the day are around 44900. However, if the index sustains below 44900, it could witness profit booking, leading the index towards 44800-44650 levels.

Banknifty is trading below the 20, 50, and 100-day SMAs, indicating a negative bias in the short term.

Banknifty continues to remain in a downtrend in the short term. Therefore, exiting on small pullback rallies remains our preferred strategy. The daily strength indicator RSI is moving downwards and is quoting below its reference line, indicating a negative bias. The trend-deciding level for the day is 45495. If BANK NIFTY trades above this level, we may witness a further rally up to 46100-47190-47795 levels. However, if BANK NIFTY trades below 45495 levels, we may see some profit booking initiating in the market, which may correct BANK NIFTY up to 44405-43800-42715 levels.

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