Nifty started the week on a positive note and buying momentum throughout the week - Axis Securities
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Nifty
Nifty started the week on a positive note and buying momentum throughout the week led it close on a strong note. Nifty closed at 17360 with a gain of 415 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 bargain buying at lower levels. 16850-16700 are a crucial support zone as it’s a confluence of the lower band of medium term falling channel from all time high and low of Oct-Sep 2022. On the other hand, upper band of falling channel which is placed at 17700 will act as crucial resistance. The chart pattern suggests that if Nifty crosses and sustains above 17500 level it would witness buying which would lead the index towards 17700-17850 levels. However if the index breaks below 17200 level it would witness selling which would take the index towards 17000-16850. Nifty is trading below 50, 100 and 200 day SMA which are important short term moving averages, indicating negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 17850-16850 with a mixed bias.
The weekly strength indicator RSI is at the verge of crossover above its reference line indicating trend may change to positive .
The trend deciding level for the day is 17315. If NIFTY trades above this level then we may witness a further rally up to 17425-17490-17605 levels. However, if NIFTY trades below 17315 levels then we may see some profit booking initiating in the market, which may correct up to 17250-17140-17070 levels.
Bank Nifty
Bank Nifty started the week with an upward gap and buying momentum for most part of the week led it to close on a strong note. Bank Nifty closed at 40609 with a gain of 1213 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 bargain buying at lower levels. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias in a medium term. The chart pattern suggests that if Bank Nifty crosses and sustains above 40800 level it would witness buying which would lead the index towards 41000-41200 levels. However if index breaks below 40400 level it would witness selling which would take the index towards 40200-40000. Bank Nifty is trading below 50 and 100 day SMA's which is an important short term moving average, indicating negative bias in the short term. Bank Nifty continues to remain in an uptrend in the short term, so buying on dips continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 41200-40000 with a mixed bias.
The weekly strength indicator RSI is at the verge of crossover above its reference line indicating trend may change to positive.
The trend deciding level for the day is 40495 If BANKNIFTY trades above this level then we may witness a further rally up to 40805-41005-41315 levels. However, if BANKNIFTY trades below 40495 levels then we may see some profit booking initiating in the market, it may correct up to 40295-39985-39785 levels.
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