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Nifty

Nifty opened with a downward gap and traded with extreme volatility on either side, closing on a negative note. Nifty closed at 24347 on 12th August, marking a loss of 21 points. On the daily chart, the index has formed a small bullish candle with shadows on either side, representing extreme volatility and indecisiveness among participants regarding the direction. The index continues to move in a lower top and lower bottom formation on the hourly chart, indicating short-term profit booking. The chart pattern suggests that if Nifty crosses and sustains above the 24450 level, it could witness buying, leading the index towards 24550-24700 levels. Important support for the day is around 24300; however, if the index sustains below 24300, it may witness profit booking, taking the index towards 24200-24000 levels. Nifty is trading below its 20-day SMAs, indicating a negative bias in the short term. For the past six trading sessions, the index has been consolidating within the range of 24400-23800 levels. Hence, any breakout on either side of the range will signal further direction. 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 24345. If Nifty trades above this level, we may witness a further rally up to 24475-24605-24735 levels. However, if Nifty trades below 24345, we may see some profit booking initiating in the market, which may correct Nifty to 24215-24085-23955 levels.

Bank Nifty

Bank Nifty opened on a negative note and traded with extreme volatility on either side. Bank Nifty closed at 50578 on 12th August with a gain of 93 points. On the daily chart, the index has formed a small bullish candle with shadows on either side, representing extreme volatility as well as indecisiveness among participants regarding the direction. The index continues to move in a lower top and lower bottom formation on the hourly chart, indicating short-term profit booking. The chart pattern suggests that if Bank Nifty crosses and sustains above the 50850 level, it could witness buying, leading the index towards 51000-51200 levels. Important support for the day is around 50400; however, if the index sustains below 50400, it could witness profit booking, leading the index towards 501050-50000 levels. Bank Nifty is trading below its 20 and 50-day SMAs, indicating a negative bias in the short term. For the past six trading sessions, Bank Nifty has been consolidating within the 50750-49750 range, and hence any breakout on either side will indicate further direction. The daily strength indicator RSI continues to remain flat and is above its reference line, indicating an absence of momentum on either side. The trend-deciding level for the day is 50520. If Bank Nifty trades above this level, we may witness a further rally up to 50890-51200-51570 levels. However, if Bank Nifty trades below 50520, we may see some profit booking initiating in the market, which may correct Bank Nifty to 50210-49840-49525 levels.

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