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Nifty

Nifty started the week on a flat note however buying momentum throughout the week led the index to end on a positive note. Nifty closed at 15923 with a gain of 234 points on a weekly basis.

On the weekly chart the index has formed a small Bullish candle carrying lower shadow indicating buying support at lower levels.Since the past 5-6 weeks, the index has been consolidating within a broad range of 15900-15500 levels representing a short term sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 15950 level it would witness buying which would lead the index towards 16100-16300 levels. However if the index breaks below 15800 level it would witness selling which would take the index towards 15700-15600. Nifty is trading above the 20 and 50 day SMA which is an important short term moving average, 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 16300-15800 with a positive bias.

The weekly strength indicator RSI is in bullish mode and sustaining above its reference lines indicating positive bias

The trend deciding level for the day is 15925. If NIFTY trades above this level then we may witness a further rally up to 15965-16000-16045 levels. However, if NIFTY trades below 15925 levels then we may see some profit booking initiating in the market, which may correct up to 15885-15845-15805 levels.

Banknifty

Bank Nifty started the week on a flat note and buying momentum for most part of the week led it to close in positive terrain. Bank Nifty closed at 35752 with a gain of 680 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 6-8 weeks, index is consolidating within 36000-34000 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 36000 level it would witness buying which would lead the index towards 36500-37200 levels. However if the index breaks below 35400 level it would witness selling which would take the index towards 35000-34600. 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 37200-35400 with a positive bias.

The 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 35800 If BANKNIFTY trades above this level then we may witness a further rally up to 35930-36105-36230 levels. However, if BANKNIFTY trades below 35800 levels then we may see some profit booking initiating in the market, it may correct up to 35625- 35500-35320 levels.

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