Nifty started the week on negative note however buying momentum throughout the week recovered some of the earlier losses to close in positive terrain - Axis Securities
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Nifty
Nifty started the week on negative note however buying momentum throughout the week recovered some of the earlier losses to close in positive terrain. Nifty closed at 14823 with a gain of 192 points on a weekly basis.
On the weekly chart index has formed a bullish candle and remained restricted within previous week's High-Low range indicating lack of strength on either side. Since past couple of months index is consolidating within broad range of 15000- 14200 levels representing sideways trend. The chart pattern suggests that if Nifty crosses and sustains above 14900 levels it would witness buying which would lead the index towards 15000-15250 levels. Important Support for the week is around 14400-14200. Nifty is trading above 20 and 50 day SMA's which are 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 15200-14600 with a positive bias.
The weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. However momentum oscillator Stochastic has turned positive from the oversold zone indicating a possible consolidation or an up-move in the near term
Banknifty
Bank Nifty started the week with a downward gap however short covering along with buying support at lower levels recovered some of the earlier losses. Bank Nifty closed at 32905 with a gain of 123 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 Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 33500 level it would witness buying which would lead the index towards 34000-34300 levels. However if index breaks below 32500 level it would witness selling which would take the index towards 32000- 31500. 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 34500-32500 with a positive bias.
The weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias. However momentum oscillator Stochastic has turned positive from the oversold zone indicating a possible consolidation or a up-move in the near term
The trend deciding level for the day is 32980 If BANKNIFTY trades above this level then we may witness a further rally up to 33185-33465-33675 levels. However, if BANKNIFTY trades below 32980 levels then we may see some profit booking initiating in the market, it may correct up to 32700-32490-32210 levels.
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