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Nifty

Nifty opened with an upward gap but witnessed selling post RBI policy to end on a negative note. Nifty closed at 21718 on 8th February, marking a loss of 213 points.

On the daily chart, the index has formed a sizable bearish candle, creating a lower High-Low, and has also closed below the previous session's low, indicating further weakness. The index during the end of the session it took support at 20 SMA which is placed at 21693. The chart pattern suggests that if Nifty crosses and sustains above 21800 level it would witness buying which would lead the index towards 21900-22000 levels. Important Supports for the day are around 21650. However, if the index sustains below 21650 then it may witness profit booking which would take the index towards 21500-21400 levels. Nifty is trading above the 20, 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 strength indicator RSI has turned negative from the 60 level mark and is below its reference line, indicating a sustained downtrend

The trend-deciding level for the day is 21800. If NIFTY trades above this level, we may witness a further rally up to 21930-22145-22275 levels. However, if NIFTY trades below 21800 levels, we may see some profit booking initiating in the market, which may correct NIFTY up to 21585-21450-21240 levels.

Bank Nifty

Bank Nifty opened with an upward gap but witnessed selling post RBI policy to close on a negative note. Bank Nifty closed at 45012 on 8th February with a loss of 807 points.

On the daily chart, the index has formed a bearish candle forming lower High-Low compared to the previous session and has also closed below the previous session's low, indicating further weakness. 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 Bank Nifty crosses and sustains above the 45150 level, it would witness buying, leading the index towards 45250-45350 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 44750-44600 levels. Bank Nifty is trading below the 20, 50, 100-day SMAs, indicating a negative bias in the short 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 has turned negative from the 50 level mark and is below its reference line indicating a sustained downtrend.

The trend-deciding level for the day is 45360. If BANK NIFTY trades above this level, we may witness a further rally up to 45830-46650-47120 levels. However, if BANK NIFTY trades below 45360 levels, we may see some profit booking initiating in the market, which may correct BANK NIFTY up to 44545-44075-43255 levels.

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