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Nifty

Nifty started the week on a flat note however buying momentum throughout the week led index to end on a strong note. Nifty closed at 16705 with a gain of 255 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 Higher Top and Higher Bottom formation on the weekly chart indicating sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 16750 level it would witness buying which would lead the index towards 16800-17000 levels. However if index breaks below 16500 level it would witness profit booking which would take the index towards 16300-16200. Nifty is trading above 20 and 50 day SMA's 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 17000-16300 with a positive bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both are in bullish mode and are above their respective reference lines indicating positive bias

The trend deciding level for the day is 16665. If NIFTY trades above this level then we may witness a further rally up to 16765-16820-16920 levels. However, if NIFTY trades below 16665 levels then we may see some profit booking initiating in the market, which may correct up to 16605-16510-16450 levels

Banknifty

Bank Nifty started the week on flat note and buying momentum for most part of the week led it to close on a positive note. Bank Nifty closed at 35628 with a gain of 594 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 past three months, index is consolidating within 36300-34000 levels indicating short term sideways trend. Hence any either side breakout will indicate further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 35800 level it would witness buying which would lead the index towards 36000-36500 levels. However if index breaks below 35000 level it would witness selling which would take the index towards 34500-34000 levels. Bank Nifty is now well placed above its 50 and 100 SMA indicating positive bias in the short term. Bank Nifty continues to extend its sideways trend for short to medium term, hence any either side breakout will signal further direction. For the week, we expect Bank Nifty to trade in the range of 36300-34500 with a 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 35570 If BANKNIFTY trades above this level then we may witness a further rally up to 35785-35940-36155 levels. However, if BANKNIFTY trades below 35570 levels then we may see some profit booking initiating in the market, it may correct up to 35415-35205-35045 levels.

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