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Nifty

Nifty opened on a positive note and traded with extreme volatility throughout the session. Nifty closed at 16986 with a gain of 41 points. On the daily chart the index has formed a small bullish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. 16850-16700 is a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. The chart pattern suggests that if Nifty crosses and sustains above 17100 level it would witness buying which would lead the index towards 17200-17300 levels. Important Support for the day is around 17000 However if index sustains below 16900 then it may witness profit booking which would take the index towards 16800-16700 levels. Nifty is trading below its 20, 50, 100, and 200-day SMA which indicates negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI is at a verge of crossover above its reference line. Sustaining above its reference line will turn bias positive. The trend deciding level for the day is 17000. If NIFTY trades above this level then we may witness a further rally up to 17080-17170-17250 levels. However, if NIFTY trades below 17000 levels then we may see some profit booking initiating in the market, which may correct up to 16905-16825-16735 levels.

Banknifty

Banknifty opened with an upward gap and witness a extreme volatile on the either side throughout the day. Banknifty closed at 39431 with a gain of 36 points. On the daily chart the index has formed a small bearish candle with shadows on either side representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index continues to move in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 39600 level it would witness buying which would lead the index towards 39800-40000 levels. Important Support for the day is around 39300 However if index sustains below 39300 then it may witness profit booking which would take the index towards 39150-39000 levels.. Banknifty is trading below 20, 50, 100 and 200 day SMA indicating negative bias in the short to medium term. Banknifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. The daily strength indicator RSI is at a verge of crossover above its reference line. Sustaining above its reference line will turn bias positive. The trend deciding level for the day is 39465. If BANK NIFTY trades above this level then we may witness a further rally up to 39660-39890-40080 levels. However, if BANK NIFTY trades below 39465 levels then we may see some profit booking initiating in the market, which may correct up to 39240-39045-38815 levels.

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