IGI Logo

Nifty

Nifty started the week on a flat note and witnessed selling pressure throughout the week dragged index to close at lowest point. Nifty closed at 16202 with a loss of 151 points on a weekly basis. On the weekly chart the index has formed a long bearish candle forming lower High-Low compare to previous week indicating weakness at current 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 16400 levels it would witness buying which would lead the index towards 16500-16800 levels. However if index breaks below 16000 level it would witness selling which would take the index towards 15800-15600. Nifty is trading below 50, 100 and 200 day SMA's which are important short term moving average, 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 16500-15700 with a negative 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 16235. If NIFTY trades above this level then we may witness a further rally up to 16295-16385-16445 levels. However, if NIFTY trades below 16235 levels then we may see some profit booking initiating in the market, which may correct up to 16140-16080-15990 levels.

Bank Nifty

Bank Nifty started the week on a flat note however selling pressure throughout the week led index to end on a weak note. Bank Nifty closed at 34484 with a loss of 1130 points on a weekly basis. On the weekly chart the index has formed a sizable bearish candle and closed below previous week's low indicating weakness on short term basis. 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 35000 level it would witness buying which would lead the index towards 35500-36000 levels. However if index breaks below 34200 level it would witness selling which would take the index towards 33800-33200. Bank Nifty is trading below 50, 100 and 200 day SMA's which are important short term moving average, 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 35000-33200 with a negative bias. The weekly strength indicator RSI is in negative terrain and below its respective reference lines indicating negative bias. The trend deciding level for the day is 34530 If BANKNIFTY trades above this level then we may witness a further rally up to 34710-34935-35115 levels. However, if BANKNIFTY trades below 34530 levels then we may see some profit booking initiating in the market, it may correct up to 34305-34120-33895 levels.

To Read Complete Report & Disclaimer Click Here
 

For More Axis Securities Disclaimer  https://simplehai.axisdirect.in/disclaimer-home

SEBI Registration number is INZ000161633

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer