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Nifty

Nifty started the week on flat note and buying momentum throughout the week led index to close on strong note near week's high. Nifty closed at 17585 with a gain of 216 points on a weekly basis.

On the weekly chart the index has formed a long bullish candle forming higher High-low comapre 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 17800 level it would witness buying which would lead the index towards 18000-18300 levels. However if index breaks below 17500 level it would witness selling which would take the index towards 17300- 17000. 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 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 18000-17400 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 17640. If NIFTY trades above this level then we may witness a further rally up to 17740-17895-17995 levels. However, if NIFTY trades below 17640 levels then we may see some profit booking initiating in the market, which may correct up to 17485-17385-17230 levels.

Banknifty

Bank Nifty started the week on flat note and buying momentum for most part of the week led it to close on a positive note. Bank Nifty closed at 37812 with a gain of 1129 points on a weekly basis.

On the weekly chart the index has formed sizable bullish candle forming higher High-low compaered to previous session indicating positive bias. 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 37000 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 37775 If BANKNIFTY trades above this level then we may witness a further rally up to 38150-38490-38870 levels. However, if BANKNIFTY trades below 37775 levels then we may see some profit booking initiating in the market, it may correct up to 37435-37055-36720 levels.

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