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Nifty

Nifty opened with an upward gap and remained lackluster within a narrow trading range throughout the day. Nifty closed at 24699 on 20th August, marking a gain of 126 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 a negative bias. The chart pattern suggests that if Nifty crosses and sustains above the 24850 level, it could witness buying, leading the index towards 24900-25000 levels. Important support for the day is around 24600. However, if the index sustains below 24600, it may witness profit booking, which could take the index towards 24500-24400 levels. Nifty is trading above longer-term averages of the 100 and 200 SMAs, indicating a positive bias in the medium term. For the past ten trading sessions, the index has been trending in a small rising channel, indicating a counter-trend bounce against the short-term negative trend. The daily strength indicator RSI is moving upwards and is above its reference line, indicating a positive bias. The trend-deciding level for the day is 24680. If Nifty trades above this level, we may witness a further rally up to 24755-24805-24880 levels. However, if Nifty trades below 24680, we may see some profit booking initiating in the market, which may correct Nifty down to 24625-24555-24500 levels.

Bank Nifty

Bank Nifty opened on a positive note and extended its buying momentum in the first half; however, we witnessed profit booking in the latter half of the day. Bank Nifty closed at 50803 on 20th August, with a gain of 435 points. On the daily chart, the index has formed a bullish candle with an upper shadow, indicating selling pressure as well as resistance at bearish gap area. The index continues to move in a lower top and lower bottom formation on the hourly chart, indicating profit booking. The chart pattern suggests that if Bank Nifty crosses and sustains above the 51000 level, it could witness buying, leading the index towards 51200-51400 levels. Important support for the day is around 50700. However, if the index sustains below 50700, it could witness profit booking, leading the index towards 50400-50250 levels. Bank Nifty is trading below its 50-day SMAs, indicating a negative bias. For the past ten trading sessions, Bank Nifty has continued to consolidate within 50850-49750, and hence any breakout on either side will indicate further direction. The daily strength indicator RSI is moving upwards and is above its reference line, indicating a positive bias. The trend-deciding level for the day is 50740. If Bank Nifty trades above this level, we may witness a further rally up to 51085-51370-51715 levels. However, if Bank Nifty trades below 50740, we may see some profit booking initiating in the market, which may correct Bank Nifty down to 50460-50115-49830 levels.

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