Nifty started the week on a flat note and remained lackluster within a narrow trading range throughout the week - Axis Securities
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Nifty
Nifty started the week on a flat note and remained lackluster within a narrow trading range throughout the week. Nifty closed at 18308 with a loss of 42 points on a weekly basis.
On the weekly chart the index has formed a small bearish candle carrying shadows on either side representing extreme volatility. The index continues to move in a Higher Top and Higher Bottom formation on the daily weekly indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 18500 level it would witness buying which would lead the index towards 18600-18800 levels. However if the index breaks below 18200 level it would witness selling which would take the index towards 18000-17700. On the daily chart, Nifty sustains above its 20, 50, 100 and 200 day SMAs 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 18800-17700 with mixed bias.
The weekly strength indicator RSI continues to remain flat above its reference line indicating positive bias. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or a profit booking in the near term
The trend deciding level for the day is 18305. If NIFTY trades above this level then we may witness a further rally up to 18400-18490-18585 levels. However, if NIFTY trades below 18305 levels then we may see some profit booking initiating in the market, which may correct up to 18215-18120-18030 levels
Bank Nifty
Bank Nifty started the week on a flat note and remained in a narrow range throughout the week, indicating lack of strength on either side. Bank Nifty closed at 42437 with a gain of 300 points on a weekly basis.
On the weekly chart the index has formed a small Bullish candle forming a higher High-low compared to previous week and has closed above previous week's high indicating positive bias. 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 42600 level it would witness buying which would lead the index towards 42800- 43000 levels. However if index breaks below 42200 level it would witness selling which would take the index towards 42000-41700. 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 43000-41700 with mixed 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 42415 If BANKNIFTY trades above this level then we may witness a further rally up to 42610-42785-42980 levels. However, if BANKNIFTY trades below 42415 levels then we may see some profit booking initiating in the market, it may correct up to 42245-42050-41875 levels
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