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Nifty

Nifty opened with an upward gap but witnessed selling from the opening tick, ending on a negative note. Nifty closed at 21522 on 30th January, marking a loss of 216 points.

On the daily chart, the index has formed a 'Piercing Bearish' candlestick pattern, indicating a potential short-term reversal. The index is retesting an upper band of a falling channel breakout, and holding above it is crucial for upside momentum to continue. The chart pattern suggests that if Nifty crosses and sustains above 21600, it would witness buying, leading the index towards 21700-21800 levels. Important supports for the day are around 21450; however, if the index sustains below 21450, it may witness profit booking, taking the index towards 21400-21300 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 an uptrend for the medium term, making buying on dips our preferred strategy.

The daily RSI remains flat and below its reference line, suggesting neutral momentum with no clear direction.

The trend-deciding level for the day is 21610. If NIFTY trades above this level, we may witness a further rally up to 21725-21925-22035 levels. However, if NIFTY trades below 21610 levels, we may see some profit booking initiating in the market, correcting NIFTY down to 21410-21300-21100 levels.

Bank Nifty

Bank Nifty opened with an upward gap and remained lacklustre within a narrow trading range throughout the day. Bank Nifty closed at 45368 on 30th January with a loss of 75 points.

On the daily chart, the index has formed a bearish candle with long shadows on either side, indicating extreme volatility 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 Nifty crosses and sustains above the 45500 level, it would witness buying, leading the index towards 45600-45700 levels. Important supports for the day are around 45250; however, if the index sustains below 45250, it could witness profit booking, leading the index towards 45150-45000 levels. Bank Nifty is trading above the 200-day SMA, indicating a positive bias in the medium term. Bank Nifty 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 continues to remain flat and is above its reference line, indicating the absence of momentum on either side.

The trend-deciding level for the day is 45420. If BANK NIFTY trades above this level, we may witness a further rally up to 45630-45890-46100 levels. However, if BANK NIFTY trades below 45420 levels, we may see some profit booking initiating in the market, correcting BANK NIFTY down to 45155-44945-44685 levels.

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