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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 at higher levels erased all the earlier gains which led the index to close in negative territory. Nifty closed at 15690 with a loss of 32 points on a weekly basis.

On the weekly chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. Since the past 3-4 of weeks index is consolidating within 15900-15600 levels indicating short term consolidation. Hence any either side breakouts will indicate further direction. 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 15900-15600 with mixed bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines indicating negative bias

Banknifty

In the previous week Bank Nifty opened with an upward gap and witnessed buying momentum in the initial half however profit booking at higher levels erased all the earlier gains which led the index to close on a flat note. Bank Nifty closed at 35072 with a gain of 262 points on a weekly basis.

On the weekly chart the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. Since the past 6-7 weeks, index is consolidating within 36000-33900 levels indicating short term consolidation. Hence any either side breakouts will indicate further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 35500 level it would witness buying which would lead the index towards 35800-36000 levels. However if index breaks below 34600 level it would witness selling which would take the index towards 34200- 33800. Bank Nifty is trading above 50 and 100 day SMA's which are important short term moving averages, 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 weekly 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 35050 If BANKNIFTY trades above this level then we may witness a further rally up to 35245-35420-35610 levels. However, if BANKNIFTY trades below 35050 levels then we may see some profit booking initiating in the market, it may correct up to 34880-34685- 34515 levels.

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