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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 positive note. Nifty closed at 17853 with a gain of 268 points on a weekly basis.

On the weekly chart the index has formed a long bullish candle forming higher High-low compare 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 17950 level it would witness buying which would lead the index towards 18100-18300 levels. However if index breaks below 17650 level it would witness selling which would take the index towards 17500- 17250. 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 18300-17600 with a positive bias.

The weekly strength indicator RSI is above its respective reference lines indicating positive bias.

The trend deciding level for the day is 17875. If NIFTY trades above this level then we may witness a further rally up to 17925-18000-18055 levels. However, if NIFTY trades below 17875 levels then we may see some profit booking initiating in the market, which may correct up to 17800-17745-17670 levels.

Banknifty

Bank Nifty started week on a negative note and remained extreme volatile on either side throughout the week. Bank Nifty closed at 37830 with a gain of 18 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. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating sustained up trend on long term charts. The chart pattern suggests that if Bank Nifty crosses and sustains above 38100 level it would witness buying which would lead the index towards 38500-38800 levels. However if index breaks below 37200 level it would witness selling which would take the index towards 36500-36200. Bank Nifty is trading avove 20, 50, and 100 day SMA's which are important short term moving averages, indicating positive bias in the short to medium 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 38800-37000 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 37875 If BANKNIFTY trades above this level then we may witness a further rally up to 38070-38305-38500 levels. However, if BANKNIFTY trades below 37875 levels then we may see some profit booking initiating in the market, it may correct up to 37635-37440-37205 levels.

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