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Nifty

Nifty opened with a downward gap and traded with a positive bias in the initial hours; however, selling pressure throughout the session led it to close near the day's low. Nifty closed at 21572 on 17th January with a loss of 460 points.

On the daily chart, the index has formed a bearish candle with a long upper shadow indicating selling pressure as well as resistance at higher levels. The index breached below 20 SMA, indicating short-term profit booking after a sharp rally. The chart pattern suggests that if Nifty crosses and sustains above 21650 levels, it would witness buying, leading the index towards 21750-21850 levels. Important supports for the day are around 21500. However, if the index sustains below 21500, then 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, 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 in the short term.

The trend-deciding level for the day is 21660. If NIFTY trades above this level, then we may witness a further rally up to 21765-21960-22065 levels. However, if NIFTY trades below 21660 levels, then we may see some profit booking initiating in the market, which may correct up to 21465-21355-21165 levels.

Bank Nifty

Bank Nifty opened with a downward gap and traded with a positive bias in the initial hours; however, selling pressure throughout the session led it to close near the day's low. Bank Nifty closed at 46064 on 17th January with a loss of 2061 points.

On the daily chart, the index has formed a bearish candle with a long upper shadow, indicating selling pressure as well as resistance at higher levels. The index broke down below the consolidation zone between 48500-47000, indicating profit booking in the short term. The chart pattern suggests that if Bank Nifty crosses and sustains above 46250 levels, it would witness buying, leading the index towards 46400-46500 levels. Important supports for the day are around 46000. However, if the index sustains below 46000, it may witness profit booking, taking the index towards 45800-45700 levels. Bank Nifty is sustaining above its 100 and 200-day SMAs, signalling bullish sentiments in the near term and medium term. Bank Nifty 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 46420. If BANK NIFTY trades above this level, then we may witness a further rally up to 46860, 47650, 48090 levels. However, if BANK NIFTY trades below 46420 levels, we may see some profit booking initiating in the market, which may correct up to 45625, 45185, 44390 levels.

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