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Nifty

Nifty started the week on a flat note and traded with extreme volatility on either side throughout the week. On 19th May, Nifty closed at 18203 with a loss of 111 points on a weekly basis.

On the weekly chart index has formed a bearish candle and remains within a range of 18460-18060 indicating indecisiveness amongst the market participants. . The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias in a medium term. The chart pattern suggests that if Nifty crosses and sustains above 18300 level it would witness buying which would lead the index towards 18500-18600 levels. However if the index breaks below 18000 level it would witness selling which would take the index towards 17800- 17700. On the daily chart, Nifty sustains above its 20, 50, 100 and 200 day SMAs indicating positive bias in the short term. Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 18600-17700 with a mixed bias.

The weekly strength indicator RSI continues to remain flat above its reference line indicating positive bias. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or profit booking in the near term

The trend deciding level for the day is 18160. If NIFTY trades above this level then we may witness a further rally up to 18260-18320-18420 levels. However, if NIFTY trades below 18160 levels then we may see some profit booking initiating in the market, which may correct up to 18105-18005-17945 levels.

Bank Nifty

Bank Nifty started the week on a flat note and remained extremely volatile on either side throughout the week. On 19th May, Bank Nifty closed at 43969 with a gain of 176 points on a weekly basis.

On the weekly chart the index has formed a small bullish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. The index continues to move in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias in a medium term. The chart pattern suggests that if Bank Nifty crosses and sustains above 44200 level it would witness buying which would lead the index towards 44350-44500 levels. However if index breaks below 43800 level it would witness selling which would take the index towards 43500-43400. Bank Nifty is trading above 20, 50, 100 and 200 day SMA which are important short term moving averages, indicating positive bias in the short to medium 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 44500-43400 with a mixed bias.

The weekly strength indicator RSI has turned flat in the overbought zone indicating lack of strength and the momentum indicator Stochastic is in negative territory indicating profit booking.

The trend deciding level for the day is 43840 If BANKNIFTY trades above this level then we may witness a further rally up to 44150-44330-44640 levels. However, if BANKNIFTY trades below 43840 levels then we may see some profit booking initiating in the market, it may correct up to 43660-43350-43170 levels.

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