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Nifty

Nifty started the week on a flat note but continued its previous week's positive momentum to end the week on a strong note. Nifty closed at 15670 with a gain of 235 points on a weekly basis

On the weekly chart the index has formed a long bullish candle forming higher High-low compared to previous week and has closed above previous week's high indicating positive bias. On the weekly chart, index has observed “Rounding Bottom” breakout indicating resumption of the earlier up trend. The chart pattern suggests that if Nifty crosses and sustains above 15800 level it would witness buying which would lead the index towards 15950-16100 levels. However if index breaks below 15600 level it would witness selling which would take the index towards 15450-15350. Nifty is trading above 20 and 50 day SMA's which are important short term moving averages, 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 15900-15500 with a positive bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.

The trend deciding level for the day is 15675. If NIFTY trades above this level then we may witness a further rally up to 15730-15785-15840 levels. However, if NIFTY trades below 15675 levels then we may see some profit booking initiating in the market, which may correct up to 15615-15565-15505 levels.

BankNifty

Bank Nifty started the week on a flat note and remained in narrow range (35800-35000) throughout the week, indicating lack of strength on either side. Bank Nifty closed at 35292 with a gain of 150 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 Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend on long term charts. The chart pattern suggests that if Bank Nifty crosses and sustains above 35700 level it would witness buying which would lead the index towards 36000-36500 levels. However if index breaks below 35000 level it would witness selling which would take the index towards 34500-34000. Bank Nifty is trading above 20 , 50 and 100 day SMA's which is important short term moving average, indicating positive bias in the short term. Bank 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 Bank Nifty to trade in the range of 36500-34500 with mixed bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.

The trend deciding level for the day is 35425 If BANKNIFTY trades above this level then we may witness a further rally up to 35675-36060-36310 levels. However, if BANKNIFTY trades below 35425 levels then we may see some profit booking initiating in the market, it may correct up to 35040-34790-34405 levels.

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