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Nifty

Nifty started the week with an upward gap and buying momentum for most part of the week led it to close on a positive note. Nifty closed at 17599 with a gain of 239 points on a weekly basis. On the weekly chart the index has formed a Bullish candle forming higher High-low compared to previous week and has also closed above the same indicating positive bias. Index is trading in a falling channel, 16850-16700 is a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. On the other hand, the upper band of the falling channel which is placed at 17700 will act as crucial resistance. The chart pattern suggests that if Nifty crosses and sustains above 17700 level it would witness buying which would lead the index towards 17850-18000 levels. However if index breaks below 17500 level it would witness selling which would take the index towards 17400-17200. Nifty is trading below 100 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 18000-17200 with a mixed bias. The Weekly strength indicator RSI has turned positive and is above its reference line indicating positive bias if sustain above its reference line. . The trend deciding level for the day is 17580. If NIFTY trades above this level then we may witness a further rally up to 17660-17715-17795 levels. However, if NIFTY trades below 17580 levels then we may see some profit booking initiating in the market, which may correct up to 17520-17445-17385 levels

Bank Nifty

Bank Nifty started the week on a positive note and remained in a narrow range throughout the week, indicating lack of strength on either side. Bank Nifty closed at 41041 with a gain of 432 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. Index approaches its upper band of medium term falling channel around 41500 which may act as crucial resistance. The chart pattern suggests that if Bank Nifty crosses and sustains above 41250 level it would witness buying which would lead the index towards 41400-41600 levels. However if index breaks below 40800 level it would witness selling which would take the index towards 40700-40500. Bank Nifty is trading below 100 day SMA's which is an important short term moving average, indicating negative bias in the short 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 41600-40500 with a mixed bias. The weekly strength indicator RSI is at the verge of crossover above its reference line indicating trend may change to positive. The trend deciding level for the day is 41045 If BANKNIFTY trades above this level then we may witness a further rally up to 41270-41500-41725 levels. However, if BANKNIFTY trades below 41045 levels then we may see some profit booking initiating in the market, it may correct up to 40815-40590-40360 levels.

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