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Nifty

Initiating the week positively, Nifty maintained consolidation through most days, yet concluding with Friday's selling pressure driving the index into negative territory. Nifty closed at 19428 on 11th August with a loss of 89 points on a weekly basis. On the week chart index has formed a bearish candle however it remained restricted within previous week's high-low range indicating absence of strength on either side. Nifty's downside pressure persists until surpassing the small descending channel and the 20-day SMA, positioned at 19600 and 19656 respectively. 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 19600 level it would witness buying which would lead the index towards 19700-19800 levels. However if index breaks below 19300 level it would witness selling which would take the index towards 19200-19100. On the daily chart, Nifty sustains above its 50, 100 and 200 day SMAs indicating positive bias in the medium 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 19800-19100 with mixed bias. The weekly strength indicator RSI remains flat and below its reference line, suggesting a neutral momentum with no clear direction. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or a profit booking in the near term The trend deciding level for the day is 19465. If NIFTY trades above this level then we may witness a further rally up to 19520-19610-19665 levels. However, if NIFTY trades below 19465 levels then we may see some profit booking initiating in the market, which may correct up to 19375-19320-19230 levels.

Bank Nifty

Bank Nifty started the week on a flat note however selling pressure throughout the week led the index to end on a weak note. Bank Nifty closed at 44199 on 11th August with a loss of 680 points on a weekly basis. On the weekly chart the index has formed a long bearish candle forming lower high-low compared to previous week and has closed below its low indicating weakness at current levels. 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 44300 level it would witness buying which would lead the index towards 44500- 44600 levels. However if index breaks below 44000 level it would witness selling which would take the index towards 43800-43700. Bank Nifty is trading above 100 and 200 day SMA which are important medium term moving averages, indicating positive bias in the long to medium 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 44600-43700 with negative bias. The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative from the overbought zone and are below their respective reference lines indicating profit booking. The trend deciding level for the day is 44295 If BANKNIFTY trades above this level then we may witness a further rally up to 44475-44745-44925 levels. However, if BANKNIFTY trades below 44295 levels then we may see some profit booking initiating in the market, it may correct up to 44025-43845-43575 levels

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