Bank Nifty started the week on a flat note and remained in narrow range (46310-45240) throughout the week - Axis Securities Ltd
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Nifty
Nifty started the week on a flat note and remained consolidated for most part of the week within 19867-19563 levels representing lack of strength. Nifty closed at 19646 on 28th July with a loss of 99 points on a weekly basis.
On the weekly chart the index has formed a Bearish candle with an upper shadow indicating selling at higher levels and also remained consolidated within previous week’s high-low range indicating lack of strength on the either side. The index is moving in a Higher Top and Higher Bottom formation on the daily and weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 19900 level it would witness buying which would lead the index towards 20000-20200 levels. However if index breaks below 19500 level it would witness selling which would take the index towards 19400-19200. On the daily chart, Nifty sustaining 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 19300-19900 with mixed bias.
The weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias.
The trend deciding level for the day is 19635. If NIFTY trades above this level then we may witness a further rally up to 19705-19770-19840 levels. However, if NIFTY trades below 19635 levels then we may see some profit booking initiating in the market, which may correct up to 19575-19500-19440 levels.
Bank Nifty
Bank Nifty started the week on a flat note and remained in narrow range (46310-45240) throughout the week, indictaing lack of strength on either side. Bank Nifty closed at 45468 on 28th July with a loss of 607 points on a weekly basis.
On the weekly chart the index has formed a small bearish 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. The chart pattern suggests that if Bank Nifty crosses and sustains above 45800 level it would witness buying which would lead the index towards 46000-46800 levels. However if index breaks below 45000 level it would witness selling which would take the index towards 44700-44500. Bank Nifty is trading above 20, 50, 100 and 200 day SMA's 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 46800-44500 with a mixed bias.
The weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias.
The trend deciding level for the day is 45480 If BANKNIFTY trades above this level then we may witness a further rally up to 45720-45965-46205 levels. However, if BANKNIFTY trades below 45480 levels then we may see some profit booking initiating in the market, it may correct up to 45230-44990-44740 levels.
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