Nifty opened on a flat note and remained in a small range throughout the day - Axis Securities
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Nifty
Nifty opened on a flat note and remained in a small range throughout the day. Nifty closed at 19665 on September 26th with a loss of 10 points.
On the daily chart, the index has formed a small bearish candle with narrow-trading range, indicating lackluster movement throughout the session. This Doji pattern has emerged at a critical support zone marked by the confluence of the 61.8% Fibonacci retracement level from the rally of 19207 to 20222 at 19600, along with the 50- day Simple Moving Average (SMA) positioned at 19634. The chart pattern suggests that if Nifty crosses and sustains above the 19750 level, it would witness buying, which could lead the index towards the 19800-19900 levels. Important support for the day is around 19600. However, if the index sustains below 19600, it may witness profit booking, which could take the index towards the 19500-19400 levels.Nifty is trading above the 50-day, 100-day, and 200-day SMAs, indicating a positive bias in the medium term. Nifty continues to remain in an uptrend for the medium term, so buying on dips remains 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 19665. If NIFTY trades above this level then we may witness a further rally up to 19695-19730-19760 levels. However, if NIFTY trades below 19665 levels then we may see some profit booking initiating in the market, which may correct up to 19635-19605-19575 levels.
Banknifty
Banknifty opened on a flat note and remained in a small range throughout the day. Banknifty closed at 44624 on September 26th with a loss of 142 points.
On the daily chart, the index has formed a bearish candle; however, it remained restricted within the previous session's High-Low range, indicating the absence of strength on either side. The index retested the symmetrical triangle's upper band near the apex of the triangle. The chart pattern suggests that if Banknifty crosses and sustains above the 44800 level, it would witness buying, which could lead the index towards the 44900-45000 levels. Important support for the day is around 44500. However, if the index sustains below 44500, it may witness profit booking, which could take the index towards the 44400-44300 levels. Banknifty is sustaining above 100-day, and 200-day SMA, signaling bullish sentiments in the near 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, continues to remain flat and is below its reference line, indicating the absence of momentum on either side.
The trend deciding level for the day is 44645.If BANK NIFTY trades above this level then we may witness a further rally up to 44755-44885-44995 levels. However, if BANK NIFTY trades below 44645 levels then we may see some profit booking initiating in the market, which may correct up to 44515-44400-44270 levels.
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