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Nifty

Nifty opened with an upward gap; however, we witnessed profit booking for most part of the day, leading it to close on a negative note. Nifty closed at 21150 on 20th December with a loss of 303 points.

On the daily chart, the index has formed a "Bearish engulfing" candle after facing major resistance near the 21600 levels, indicating profit booking at higher levels. The index has broken below the short-term upward-sloping channel, indicating profit booking. The chart pattern suggests that if Nifty crosses and sustains above 21250 level, it would witness buying which would lead the index towards 21300-21400 levels. Important Supports for the day are around 21100. However, if the index sustains below 21100, then it may witness profit booking, which would take the index towards 21000-20800 levels. Nifty is trading above 20, 50, 100, and 200-day SMAs, indicating positive bias in the medium term.

Nifty continues to remain in an uptrend for the medium term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI has turned negative from the overbought territory and is below its reference line, indicating profit booking. The trend-deciding level for the day is 21275. If NIFTY trades above this level, then we may witness a further rally up to 21465-21780-21970 levels. However, if NIFTY trades below 21275 levels, then we may see some profit booking initiating in the market, which may correct up to 20960-20770-20455 levels.

Bank Nifty

Banknifty opened with an upward gap; however, we witnessed profit booking for most part of the day, leading it to close on a negative note. Banknifty closed at 47445 on 20th December with a loss of 426 points. On the daily chart, the index has formed a "Bearish Engulfing" candle after facing major resistance near the 48200 levels, indicating profit booking at higher levels.

The index engulfed the previous four sessions' candles, indicating further weakness in the short term. The chart pattern suggests that if Banknifty crosses and sustains above the 47600 level, it would witness buying, which would lead the index towards 47700-47800 levels. Important supports for the day are around 47300. However, if the index sustains below 47300, then it may witness profit booking, which would take the index towards 47200-47000 levels. Banknifty is sustaining above its 20, 50, 100, and 200- day SMAs, signaling bullish sentiments in the medium term.

Banknifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI has turned negative from the overbought territory and is below its reference line, indicating profit booking. The trend-deciding level for the day is 47605. If BANK NIFTY trades above this level, then we may witness a further rally up to 48005-48570-48970 levels. However, if BANK NIFTY trades below 47605 levels, then we may see some profit booking initiating in the market, which may correct up to 47045-46640-46080 levels.

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