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Nifty

Nifty started the week on a positive note and remained subdued within 17500-17100 levels throughout the week indicating lack of strength on either side. Nifty closed at 17398 with a gain of 239 points on a weekly basis. On the weekly chart the index has formed a small Bullish candle carrying shadows on the either side representing volatility on the either side. 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 17500 level it would witness buying which would lead the index towards 17700-17800 levels. However if the index breaks below 17200 level it would witness selling which would take the index towards 17000-16800. Nifty is now well placed above its 20, 50, 100 and 200 Day SMA 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 17800-17000 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 17405. If NIFTY trades above this level then we may witness a further rally up to 17465-17535-17590 levels. However, if NIFTY trades below 17405 levels then we may see some profit booking initiating in the market, which may correct up to 17340-17280-17215 levels.

Banknifty

Bank Nifty started the week on a flat note and remained in a narrow range(38200-37200) throughout the week,indicating lack of strength on either side. Bank Nifty closed at 37921 with a gain of 429 points on a weekly basis. On the weekly chart the index has formed a small Bullish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. 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 Bank Nifty crosses and sustains above 38200 level it would witness buying which would lead the index towards 38500-39000 levels. However if index breaks below 37500 level it would witness selling which would take the index towards 37000- 36700. 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 39000-37000 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 37950 If BANKNIFTY trades above this level then we may witness a further rally up to 38120-38320-38490 levels. However, if BANKNIFTY trades below 37950 levels then we may see some profit booking initiating in the market, it may correct up to 37750-37580-37380 levels.

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