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Nifty

Nifty commenced the week with a subdued start and experienced notable volatility throughout most of the trading days. Nevertheless, a surge in buying momentum during the final session propelled the index to finish in positive territory. Nifty closed at 19435 on 01st September with a gain of 170 points on a weekly basis.

During the week, Nifty forms a bullish candle but remained constrained within the high-low range of the previous week, suggesting a lack of pronounced directional momentum. The index continues to move in a lower top and lower bottom formation on the daily chart indicating negative bias in a short term. The chart pattern suggests that if Nifty crosses and sustains above 19500 level it would witness buying which would lead the index towards 19700-19800 levels. However if index breaks below 19350 level it would witness selling which would take the index towards 19200-19100. On the daily chart, Nifty sustains above its 20, 50, 100 and 200 day SMAs indicating positive bias in the medium term. Nifty continues to remain in a downtrend in the short, so selling on rallies continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 19800-19100 with mixed bias.

The weekly strength indicators RSI and momentum indicator Stochastic, have both flattened out, signaling a notable absence of underlying strength or momentum in the index.

The trend deciding level for the day is 19385. If NIFTY trades above this level then we may witness a further rally up to 19510-19585-19715 levels. However, if NIFTY trades below 19385 levels then we may see some profit booking initiating in the market, which may correct up to 19310-19180-19105 levels.

Bank Nifty

Bank Nifty started the week on a flat note and remained in a narrow range throughout the week, underscoring a notable absence of strength or conviction on either side. Bank Nifty closed at 44436 on 01st September with a gain of 205 points on a weekly basis.

The weekly chart displays a bullish candle with shadows on sides, suggesting volatility and indecision, while remaining within the previous week's high-low range, signaling a lack of clear strength on either side. The index is moving in a lower top and lower bottom formation on the daily chart indicating negative bias in a short term. The chart pattern suggests that if Bank Nifty crosses and sustains above 44600 level it would witness buying which would lead the index towards 44800-44900 levels. However if index breaks below 44350 level it would witness selling which would take the index towards 44250-44000. Bank Nifty is trading above 20, 100 and 200 day SMA which are important moving averages, indicating positive bias in the medium term. Bank Nifty continues to remain in a downtrend in the short, so selling on rallies continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 44900-44000 with mixed bias.

The weekly strength indicator RSI continue to remian flat indicating absence of strength. However momentum oscillator Stochastic has turned positive from the oversold zone indicating a possible upmove in the near term

The trend deciding level for the day is 44280 If BANKNIFTY trades above this level then we may witness a further rally up to 44725-45015-45465 levels. However, if BANKNIFTY trades below 44280 levels then we may see some profit booking initiating in the market, it may correct up to 43990-43540-43250 levels

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