Nifty started the week on a flat note but continued its previous week's positive momentum to end the week on a strong note - Axis Securities
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Nifty
Nifty started the week on a flat note but continued its previous week's positive momentum to end the week on a strong note. Nifty closed at 16529 with a gain of 291 points on a weekly basis.
On the weekly chart the index has formed a long Bullish candle forming 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 weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 16600 level it would witness buying which would lead the index towards 16800-16900 levels. However if index breaks below 16350 level it would witness selling which would take the index towards 16200-16000. Nifty is trading above the 20 and 50 day SMA which are important short term moving averages, 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 16900-16300 with a positive bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.
The trend deciding level for the day is 16485. If NIFTY trades above this level then we may witness a further rally up to 16590-16650-16755 levels. However, if NIFTY trades below 16485 levels then we may see some profit booking initiating in the market, which may correct up to 16420-16315-16255 levels.
Banknifty
Bank Nifty started the week on a flat note and remained in a narrow range(36300-35500) throughout the week,indicating lack of strength on either side. Bank Nifty closed at 36169 with a gain of 360 points on a weekly basis.
On the weekly chart the index has formed a small Bullish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. Since the past three months, the index is consolidating within 36200-34000 levels indicating short term consolidation. Hence any either side breakout will indicate further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 36300 level it would witness buying which would lead the index towards 36700-37100 levels. However if the index breaks below 35600 level it would witness selling which would take the index towards 35200-34500. Bank Nifty is trading above 20 , 50 and 100 day SMA's which is an important short term moving average, 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 37100-35400 with a positive bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.
The trend deciding level for the day is 36115 If BANKNIFTY trades above this level then we may witness a further rally up to 36290-36410-36585 levels. However, if BANKNIFTY trades below 36115 levels then we may see some profit booking initiating in the market, it may correct up to 35995- 35815-35695 levels.
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