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Nifty

In the previous week Nifty opened with an upward gap and witnessed buying momentum in the initial half however profit booking in Friday’s sessions erased some of earlier gains. Nifty closed at 19745 on 21st July with a gain of 181 points on a weekly basis.

On the weekly chart the index has formed a small bullish candle with a long upper shadow indicating selling pressure around 20000 level. The index is moving in a Higher Top and Higher Bottom formation on the daily 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 20000-20100 levels. However if the index breaks below 19600 level it would witness selling which would take the index towards 19500-19400. On the daily chart, Nifty sustains 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 20100-19400 with a positive 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 19775. If NIFTY trades above this level then we may witness a further rally up to 19855-19965-20040 levels. However, if NIFTY trades below 19775 levels then we may see some profit booking initiating in the market, which may correct up to 19670-19590-19480 levels.

Bank Nifty

Bank Nifty started the week with an upward gap and buying momentum for most part of the week led it to close in positive territory. Bank Nifty closed at 46075 on 21st July with a gain of 1256 points on a weekly basis.

On the weekly chart the index has formed a bullish candle forming a higher High-low compared to previous week and has closed above previous week's high indicating positive bias. 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 46200 level it would witness buying which would lead the index towards 46400- 46600 levels. However if index breaks below 46000 level it would witness selling which would take the index towards 45900-45700. Bank Nifty is trading above 20, 50, 100 and 200 day SMA 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 46600-45700 with a positive 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 46125 If BANKNIFTY trades above this level then we may witness a further rally up to 46320-46565-46765 levels. However, if BANKNIFTY trades below 46125 levels then we may see some profit booking initiating in the market, it may correct up to 45880-45680-45435 levels.

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