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Nifty

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. Nifty closed at all time high of 17324 with a gain of 618 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 17400 level it would witness buying which would lead the index towards 17500-17700 levels. However if index breaks below 17200 level it would witness selling which would take the index towards 17050-16900. 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 17700-17100 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 17290. If NIFTY trades above this level then we may witness a further rally up to 17370-17420-17500 levels. However, if NIFTY trades below 17290 levels then we may see some profit booking initiating in the market, which may correct up to 17245-17165-17115 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 36761 with a gain of 1133 points on a weekly basis.

On the weekly chart the index has formed sizable bullish candle forming higher High-low compared 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 37200 level it would witness buying which would lead the index towards 37500-37800 levels. However if index breaks below 36400 level it would witness selling which would take the index towards 36200-35700. Bank Nifty is trading above 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 37800-36200 with a 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 36820 If BANKNIFTY trades above this level then we may witness a further rally up to 37080-37400-37655 levels. However, if BANKNIFTY trades below 36820 levels then we may see some profit booking initiating in the market, it may correct up to 36505- 36245-35925 levels.

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