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Nifty

Nifty started the week on a flat note and traded with extreme volatility on either side throughout the week which led it to close with marginal loss. Nifty closed at 15763 with a loss of 93 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 6-8 weeks, the index has been consolidating within a broad range of 15900-15500 levels representing short term sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 15900 level it would witness buying which would lead the index towards 16100-16300 levels. However if the index breaks below 15600 level it would witness selling which would take the index towards 15500-15300. Nifty is now well placed above its 50 and 100 day SMA 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 15900-15500 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 15790. If NIFTY trades above this level then we may witness a further rally up to 15835-15910-15955 levels. However, if NIFTY trades below 15790 levels then we may see some profit booking initiating in the market, which may correct up to 15720-15670-15600 levels.

Banknifty

Bank Nifty started the week on a flat note but continued its previous week's negative momentum to end the week on a weak note. Bank Nifty closed at 34584 with a loss of 450 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 past three months, index is consolidating within 36000-34000 levels indicating short term consolidation. Hence any eitherside breakouts will indictaing further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 35000 level it would witness buying which would lead the index towards 35500-36000 levels. However if index breaks below 34000 level it would witness selling which would take the index towards 33500-33000. Bank Nifty is trading below 20-day and 50-day SMA's which are important short term moving average, indicating negative bias in the short to medium term. Bank Nifty continues to remain sideways in the medium term, hence eitherside breakout will signal the direction ahead . For the week, we expect Bank Nifty to trade in the range of 35500-33500 with a negative 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 34590 If BANKNIFTY trades above this level then we may witness a further rally up to 34735-34885-35025 levels. However, if BANKNIFTY trades below 34590 levels then we may see some profit booking initiating in the market, it may correct up to 34440-34295- 34145 levels.

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