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Nifty

Nifty started the week on a flat note and traded with extreme volatility with positive bias for most part of the week. Nifty closed at 17197 with a gain of 170 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 Nifty crosses and sustains above 17550 level it would witness buying which would lead the index towards 17700-17800 levels. However if index breaks below 17100 level it would witness selling which would take the index towards 16900-16600. Nifty is trading below 20 and 50 day SMA’s 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 17700-16900 with mixed bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines indicating negative bias. The trend deciding level for the day is 17290. If NIFTY trades above this level then we may witness a further rally up to 17395-17600-17705 levels. However, if NIFTY trades below 17290 levels then we may see some profit booking initiating in the market, which may correct up to 17090-16980-16780 levels.

Banknifty

Bank Nifty started the week on a flat note and remained subdued in a narrow trading range (36800-35300) for most part of the week. Bank Nifty closed at 36197 with a gain of 172 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 36900 level it would witness buying which would lead the index towards 37300-37800 levels. However if index breaks below 35800 level it would witness selling which would take the index towards 35500-35100. Bank Nifty is trading below 20,50 and 100 day SMA's which are important short term moving average, indicating negative bias in the short to medium term. Bank 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 Bank Nifty to trade in the range of 37800- 34800 with mixed bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines indicating negative bias. The trend deciding level for the day is 36370 If BANKNIFTY trades above this level then we may witness a further rally up to 36675-37150-37455 levels. However, if BANKNIFTY trades below 36370 levels then we may see some profit booking initiating in the market, it may correct up to 35890-35585-35110 levels.

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