Nifty started the week on a flat note and remained consolidated for most part of the week - Axis Securities
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Nifty
Nifty started the week on a flat note and remained consolidated for most part of the week; however, the last couple of trading session's gains pulled the index higher to end on a positive note. Nifty closed at 16352 with a gain of 86 points on a weekly basis.
On the weekly chart the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. The index is moving in a Lower Top and Lower Bottom formation on the weekly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 16400 level it would witness buying which would lead the index towards 16600-16900 levels. However if the index breaks below 16100 level it would witness selling which would take the index towards 15800-15600. Nifty is trading below 50, 100 and 200 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 16800-15900 with a positive bias.
The weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias.
The trend deciding level for the day is 16315. If NIFTY trades above this level then we may witness a further rally up to 16410-16465-16555 levels. However, if NIFTY trades below 16315 levels then we may see some profit booking initiating in the market, which may correct up to 16260-16165-16110 levels
Bank Nifty
Bank Nifty started the week on a flat note but continued its previous week's positive momentum to end the week on a strong note. Bank Nifty closed at 35613 with a gain of 1337 points on a weekly basis.
On the weekly chart the index has formed a sizable bullish candle and closed above previous week's high indicating positive bias. The index is moving in a Lower Top and Lower Bottom formation on the weekly chart indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 35700 level it would witness buying which would lead the index towards 36000-36500 levels. However if the index breaks below 35300 level it would witness selling which would take the index towards 34800-34000. Bank Nifty is trading below 50, 100 and 200 day SMA's which are important short term moving averages, indicating negative bias in the short to medium term. Bank 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 Bank Nifty to trade in the range of 36500-35000 with positive bias.
The daily and 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 35535 If BANKNIFTY trades above this level then we may witness a further rally up to 35775-35935-36180 levels. However, if BANKNIFTY trades below 35535 levels then we may see some profit booking initiating in the market, it may correct up to 35370-35130-34970 levels.
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