If NIFTY trades above this level then we may witness a further rally up to 15760-15800-15865 levels - Axis Securities
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Nifty
Nifty started the week on a positive note but witnessed selling at higher levels to end the week on weak note. Nifty closed at 15722 with a loss of 138 points on a weekly basis.
On the weekly chart index has formed a bearish candle and remains within a range of 15900-15400 indicating indecisiveness amongst the market participants. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 15800 level it would witness buying which would lead the index towards 15900-16300 levels. However if index breaks below 15600 level it would witness selling which would take the index towards 15400-15300. Nifty is now well placed above its 50 and 100 SMA indicating positive bias in the short term. Nifty is expected to remain in an uptrend to sideways zone until it breaks 10600 on the downside. For the week, we expect Nifty to trade in the range of 16100-15600 with mixed bias.
The weekly strength indicator RSI is in bullish mode indicating strength ahead.
The trend deciding level for the day is 15700. If NIFTY trades above this level then we may witness a further rally up to 15760-15800-15865 levels. However, if NIFTY trades below 15700 levels then we may see some profit booking initiating in the market, which may correct up to 15660-15595-15555 levels.
Bank Nifty
Bank Nifty started the week on a positive note but witnessed selling at higher levels to end the week on weak note. Bank Nifty closed at 34810 with a loss of 555 points on a weekly basis.
On the weekly chart index has formed a bearish candle and remains within a range of 35800-33900 indicating indecisiveness amongst the market participants. Since past 5-6 weeks, index is consolidating within 35800-33900 levels indicating short term consolidation. Hence any eitherside breakout will indicate further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 35000 levels it would witness buying which would lead the index towards 35500-36300 levels. However if index breaks below 34500 level it would witness selling which would take the index towards 34000- 33000. Bank Nifty is trading above 50 and 100 day SMA's which are important short term moving average, indicating positive bias in the short 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 36000-34000 with mixed bias.
The daily 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 34780 If BANKNIFTY trades above this level then we may witness a further rally up to 34925-35040-35185 levels. However, if BANKNIFTY trades below 34780 levels then we may see some profit booking initiating in the market, it may correct up to 34665-34515- 34400 levels.
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