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Nifty

Nifty started the week on a negative note and traded with extreme volatility on either side throughout the week. Nifty closed at 16945 with a loss of 155 points on a weekly basis. On the weekly chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. 16850-16700 is a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. The chart pattern suggests that if Nifty crosses and sustains above 17100 level it would witness buying which would lead the index towards 17250-17500 levels. However if the index breaks below 16800 level it would witness selling which would take the index towards 16700-16500. Nifty is trading below 20, 50, 100 and 200 day SMA 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 17500-16500 with a negative bias. The daily and weekly strength indicator RSI is moving downward and is quoting below its reference line indicating negative bias. The trend deciding level for the day is 16990. If NIFTY trades above this level then we may witness a further rally up to 17065-17185-17255 levels. However, if NIFTY trades below 16990 levels then we may see some profit booking initiating in the market, which may correct up to 16870-16800-16680 levels.

Banknifty

Bank Nifty started the week on a negative note and remained extremely volatile on either side throughout the week. Bank Nifty closed at 39395 with a loss of 203 points on a weekly basis. On the weekly chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 39500 level it would witness buying which would lead the index towards 39750-40000 levels. However if index breaks below 39250 level it would witness selling which would take the index towards 39000-38800. Bank Nifty is trading below 20, 50, 100 and 200 day SMA which is an important short term moving average, indicating negative bias in the short term. Bank Nifty continues to remain in an uptrend in the short term, so buying on dips continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 40000-38800 with a negative 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 39485 If BANKNIFTY trades above this level then we may witness a further rally up to 39675-39960-40150 levels. However, if BANKNIFTY trades below 39485 levels then we may see some profit booking initiating in the market, it may correct up to 39205-39015-38730 levels.

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