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Nifty

Nifty started the week with an upward gap and buying momentum throughout the week led it close at 16238 with a gain of 475 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 decisively brokenout its past two months multiple resistance zone of 15900 levels on a closing basis. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating sustained uptrend. The chart pattern suggests that if Nifty crosses and sustains above 16350 level it would witness buying which would lead the index towards 16500-16600 levels. However if index breaks below 16180 level it would witness profit booking which would take the index towards 16100- 15900. Nifty is trading above 20 and 50 day SMA which are important short term moving averages, 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 16500-16000 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 16265. If NIFTY trades above this level then we may witness a further rally up to 16310-16380-16420 levels. However, if NIFTY trades below 16265 levels then we may see some profit booking initiating in the market, which may correct up to 16195-16155-16080 levels.

Banknifty

Bank Nifty started the week with an upward gap and buying momentum for most part of the week led it to close in positive territory. Bank Nifty closed at 35809 with a gain of 1225 points on a weekly basis.

On the weekly chart the index has formed a sizable bullish candle forming higher High-low compared to previous week indicating positive bias. Since the past three months, index is consolidating within 36000-34000 levels indicating short term consolidation. Hence any either side breakout will indicate further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 36000 level it would witness buying which would lead the index towards 36500-36800 levels. However if the index breaks below 35600 level it would witness selling which would take the index towards 35200-34500. Bank Nifty is trading above 20 , 50 and 100 day SMA's which is an important short term moving average, 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 36800-35300 with a positive bias.

The weekly strength indicator RSI is in positive terrain and sustaining above its respective reference line indicating positive bias.

The trend deciding level for the day is 35865 If BANKNIFTY trades above this level then we may witness a further rally up to 36025-36245-36405 levels. However, if BANKNIFTY trades below 35865 levels then we may see some profit booking initiating in the market, it may correct up to 35645- 35485-35265 levels.

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