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Nifty

Nifty started the week on a flat note and traded with extreme volatility on either side for most part of the week, however buying momentum at lower levels pulled the index higher to close in green on a weekly basis. Nifty closed at 17511 with a gain of 315 points on a weekly basis.

On the weekly chart the index has formed a bullish candle with lower shadow indicating support at lower levels. Since the past couple of weeks the index has been consolidating within 17600-16800 levels indicating short term consolidation. Hence any either side breakout will indicate further direction. The chart pattern suggests that if Nifty crosses and sustains above 17600 level it would witness buying which would lead the index towards 17700-17900 levels. However if the index breaks below 17300 level it would witness selling which would take the index towards 17100-16800. Nifty is now well placed above its 100-Day SMA (17244) 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 17800-17000 with a positive bias.

The weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. However on the daily chart, it has turned bullish representing bounce back rally.

The trend deciding level for the day is 17485. If NIFTY trades above this level then we may witness a further rally up to 17560-17615-17690 levels. However, if NIFTY trades below 17485 levels then we may see some profit booking initiating in the market, which may correct up to 17435-17355-17305 levels.

Banknifty

Bank Nifty started the week on a flat note and traded with extreme volatility on either side for most part of the week, however buying momentum at lower levels pulled the index higher to close in green on a weekly basis. Bank Nifty closed at 37106 with a gain of 909 points on a weekly basis.

On the weekly chart the index has formed a small Bullish candle forming higher High-low compared to previous week and has closed above previous week's high indicating positive bias. It has also formed a "morning star" bullish trend reversal pattern indicating strength in the near term. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend on long term charts. The chart pattern suggests that if Bank Nifty crosses and sustains above 37400 level it would witness buying which would lead the index towards 37600-38300 levels. However if the index breaks below 36800 level it would witness selling which would take the index towards 36500-36000. Bank Nifty is now well placed above its 200-Day SMA (35716) 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 38300-36500 with a positive bias.

The weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. However on the daily chart, it has turned bullish representing bounce back rally. The trend deciding level for the day is 37030 If BANKNIFTY trades above this level then we may witness a further rally up to 37230-37355-37560 levels. However, if BANKNIFTY trades below 37030 levels then we may see some profit booking initiating in the market, it may correct up to 36900-36700-36575 levels.

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