Nifty opened with an upward gap and remained lacklustre within a narrow trading range throughout the day - Axis Securities Ltd
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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 22888 on 28th May, marking a loss of 44 points. On the daily chart, the index has formed a "Doji" candlestick formation, indicating indecisiveness among market 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 23000 level, it would witness buying which could lead the index towards the 23100-23200 levels. Important support for the day is around 22800. However, if the index sustains below 22800, it may witness profit booking which could take the index towards the 22700-22600 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 22915. If Nifty trades above this level, we may witness a further rally up to the 22970-23055-23110 levels. However, if Nifty trades below 22915, we may see some profit booking initiating in the market, which may correct Nifty down to the 22830-22775-22690 levels.
Bank Nifty
Bank Nifty opened with an upward gap and formed shadows on either side, indicating a lack of bullish confidence among participants. Bank Nifty closed at 49142 on 28th May with a loss of 140 points. On the daily chart, the index has formed a bearish candle with long shadows on either side, indicating extreme volatility at higher levels. The index is moving in a higher top and higher bottom formation on the daily chart, indicating a short-term uptrend. The chart pattern suggests that if Bank Nifty crosses and sustains above the 49300 level, it would witness buying, leading the index towards the 49500- 49600 levels. Important support for the day is around 49000. However, if the index sustains below 49000, it could witness profit booking, leading the index towards the 48800-48700 levels.
Bank Nifty is trading above the 20, 50, 100, and 200-day SMA, indicating a positive bias in the short to 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 has turned positive from oversold and is above its reference line, indicating sustained strength. The trend-deciding level for the day is 49230. If Bank Nifty trades above this level, we may witness a further rally up to the 49420-49700-49890 levels. However, if Bank Nifty trades below 49230, we may see some profit booking initiating in the market, which may correct Bank Nifty down to the 48955- 48765-48485 levels.
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