Nifty started the week on a negative note but witnessed buying at lower levels to end the week on a flat note - Axis Securities
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Nifty
Nifty started the week on a negative note but witnessed buying at lower levels to end the week on a flat note. Nifty closed at 15856 with a loss of 67 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. On the daily chart, the index is consolidating within the range of 15600 - 15900 indicating sideways trend.. The chart pattern suggests that if Nifty crosses and sustains above 16000 level it would witness buying which would lead the index towards 16200-16400 levels. However if index breaks below 15700 level it would witness selling which would take the index towards 15500-15400. Nifty is trading above 20 and 50 day SMA's which is important short term moving average, indicating positive bias in the short term. Nifty is expected to remain in an uptrend to sideways zone until it breaks 15600 on the downside. For the week, we expect Nifty to trade in the range of 16000-15600 with a positive bias.
The weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or a down move in the near term
The trend deciding level for the day is 15840. If NIFTY trades above this level then we may witness a further rally up to 15915-15975-16045 levels. However, if NIFTY trades below 15840 levels then we may see some profit booking initiating in the market, which may correct up to 15785-15710-15650 levels
Banknifty
Bank Nifty started the week on a negative note and remained negative in initial half however Friday's strong gains pulled index higher to end on flat note. Bank Nifty closed at 35034 with a loss of 716 points on a weekly basis.
On the weekly chart the index has formed a Bearish candle with a long lower shadow indicating buying at lower levels.. On the daily chart, the index is consolidating within the range of 34000 - 36000 indicating sideways trend.. The chart pattern suggests that if Bank Nifty crosses and sustains above 35400 level it would witness buying which would lead the index towards 35800-36200 levels. However if index breaks below 34400 level it would witness selling which would take the index towards 34000-33700. Bank Nifty is now well placed above its 20 SMA 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 34300-36000 with mixed bias.
The weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or a down move in the near term
The trend deciding level for the day is 34840 If BANKNIFTY trades above this level then we may witness a further rally up to 35280-35525-35965 levels. However, if BANKNIFTY trades below 34840 levels then we may see some profit booking initiating in the market, it may correct up to 34595-34160-33915 levels
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