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Nifty

Nifty opened with an upward gap and remained lacklustre within a narrow trading range throughout the day. Nifty closed at 24951 on 31st July, marking a gain of 94 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 is moving in a higher top and higher bottom formation on the daily chart, indicating a sustained uptrend. The chart pattern suggests that if Nifty crosses and sustains above the 25000 level, it could witness buying that would lead the index towards 25200-25300 levels. Important support for the day is around 24850. However, if the index sustains below 24850, it may witness profit booking, which could take the index towards 24750-24600 levels. Nifty is trading above the 20, 50, 100, and 200-day SMAs, indicating a positive bias in the short to medium term. Nifty continues to remain in an uptrend for the short term, making buying on dips our preferred strategy. 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 24930. If Nifty trades above this level, we may witness a further rally up to 25005-25060-25135 levels. However, if Nifty trades below 24930, we may see some profit booking initiating in the market, which may correct Nifty to 24875-24805-24750 levels.

Bank Nifty

Bank Nifty opened with an upward gap and remained lacklustre within a narrow trading range throughout the day. Bank Nifty closed at 51553 on 31st July with a gain of 54 points. On the daily chart, the index has formed a bullish candle with a lower shadow, indicating buying at lower levels. The index continues to move in a lower top and lower bottom formation on the hourly chart, indicating profit booking in the short term. The chart pattern suggests that if Bank Nifty crosses and sustains above the 51700 level, it could witness buying, leading the index towards 51950-52100 levels. Important support for the day is around 51350. However, if the index sustains below 51350, it could witness profit booking, leading the index towards 51150-51000 levels. Bank Nifty is trading above the 50, 100, and 200-day SMA, indicating a positive bias in the medium term. Bank Nifty continues to remain in an uptrend in the medium and long term. Therefore, buying on dips remains our preferred strategy. The daily strength indicator RSI continues to remain flat and is below its reference line, indicating an absence of momentum on either side. The trend-deciding level for the day is 51515. If Bank Nifty trades above this level, we may witness a further rally up to 51700-51845-52025 levels. However, if Bank Nifty trades below 51515, we may see some profit booking initiating in the market, which may correct Bank Nifty to 51370-51190-51045 levels.

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