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Nifty

Nifty started the week on a negative note but witnessed buying at lower levels to end the week on a positive note. Nifty closed at 18513 with a gain of 205 points on a weekly basis.

On the weekly chart the index has formed a Bullish candle which has totally engulfed its previous week's move forming a "Bullish Engulfing" candlestick formation indicating a positive trend. The index continues to move in a Higher Top and Higher Bottom formation on the daily weekly indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 18600 level it would witness buying which would lead the index towards 18800- 19000 levels. However if the index breaks below 18300 level it would witness selling which would take the index towards 18100-17900. 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 19000-17900 with mixed bias.

The weekly strength indicator RSI is above its respective reference lines indicating positive bias

The trend deciding level for the day is 18490. If NIFTY trades above this level then we may witness a further rally up to 18535-18580-18625 levels. However, if NIFTY trades below 18490 levels then we may see some profit booking initiating in the market, which may correct up to 18450-18400-18360 levels

Bank Nifty

Bank Nifty started the week with a downward gap and buying momentum led it close on a positive note. Bank Nifty closed at 42984 with a gain of 547 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 43200 level it would witness buying which would lead the index towards 43500- 43700 levels. However if index breaks below 42700 level it would witness selling which would take the index towards 42500-42300. 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 43700-42300 with mixed bias.

The daily and 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 43060 If BANKNIFTY trades above this level then we may witness a further rally up to 43255-43535-43725 levels. However, if BANKNIFTY trades below 43060 levels then we may see some profit booking initiating in the market, it may correct up to 42780-42585-42305 levels

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