Nifty started the week on a positive note and traded with extreme volatility on either side for most part of the week - Axis Securities
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Nifty
Nifty started the week on a positive note and traded with extreme volatility on either side for most part of the week, however buying momentum at lower levels pulled index higher to close on a positive note. Nifty closed at 18350 with a gain of 233 points on a weekly basis.
On the weekly chart the index has formed a Bullish candle with a lower shadow indicating buying near 18000 level. The index continues to move in a Higher Top and Higher Bottom formation on the daily and weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 18500 level it would witness buying which would lead the index towards 18600-18900 levels. However if the index breaks below 18200 level it would witness selling which would take the index towards 18000-17700. On the daily chart, Nifty sustains above its 20, 50, 100 and 200 day SMAs 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 18900-17700 with 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 18325. If NIFTY trades above this level then we may witness a further rally up to 18390-18425-18490 levels. However, if NIFTY trades below 18325 levels then we may see some profit booking initiating in the market, which may correct up to 18285-18220-18180 levels
Bank Nifty
Bank Nifty started the week on a positive note and traded with extreme volatility on either side throughout the week. Bank Nifty closed at 42137 with a gain of 879 points on a weekly basis.
On the weekly chart the index has formed a small Bullish candle forming a higher High-low compared 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 daily chart indicating positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 42350 levels it would witness buying which would lead the index towards 42500- 42800 levels. However if index breaks below 42000 level it would witness selling which would take the index towards 41750-41500. Bank Nifty is trading above 20, 50, 100 and 200 day SMA 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 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 42800-41500 with 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 42135 If BANKNIFTY trades above this level then we may witness a further rally up to 42350-42560-42775 levels. However, if BANKNIFTY trades below 42135 levels then we may see some profit booking initiating in the market, it may correct up to 41920-41705-41495 levels
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