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Nifty

Index opened on strong note and traded with extreme volatility on either side however buying support at lower levels pulled index higher to end flat note. Nifty closed at 15752 with a gain of 53 points on a weekly basis. On the weekly chart the index has formed a small bearish candle with a long lower shadow indicating buying at lower levels. The index is moving in a Lower Top and Lower Bottom formation on the weekly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 15800 level it would witness buying which would lead the index towards 16000-16300 levels. However if the index breaks below 15500 level it would witness selling which would take the index towards 15300-15200. Nifty is trading below 20, 50, 100 and 200 day SMA's which are important short term moving averages, indicating negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 16200-15500 with mixed bias. The weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 15685. If NIFTY trades above this level then we may witness a further rally up to 15860-15970-16145 levels. However, if NIFTY trades below 15685 levels then we may see some profit booking initiating in the market, which may correct up to 15575-15405-15295 levels

Bank Nifty

Index opened on strong note and traded with extreme volatility on either side however buying support at lower levels pulled index higher to end flat note. Bank Nifty closed at 33539 with a loss of 88 points on a weekly basis. On the weekly chart the index has formed a Bearish candle with a lower shadow indicating buying at lower levels. The index is moving in a Lower Top and Lower Bottom formation on the weekly chart indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 33800 level it would witness buying which would lead the index towards 34300-34800 levels. However if index breaks below 33000 level it would witness selling which would take the index towards 32600-32200. Bank Nifty is trading below 20, 50, 100 and 200 day SMA's which are important short term moving averages, indicating negative bias in the short to medium term. Bank Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 34800-33000 with mixed bias. The weekly strength indicator RSI is in negative terrain and are below their respective reference lines indicating negative bias. The trend deciding level for the day is 33430 If BANKNIFTY trades above this level then we may witness a further rally up to 33775-34015-34365 levels. However, if BANKNIFTY trades below 33430 levels then we may see some profit booking initiating in the market, it may correct up to 33190-32845-32605 levels.

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