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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 18117 with a gain of 330 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 also closed above the same indicating positive bias. The index continues to move in a Higher Top and Higher Bottom formation on the daily and weekly charts indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 18300 level it would witness buying which would lead the index towards 18500- 18700 levels. However if the index breaks below 18000 level it would witness selling which would take the index towards 17800-17500. 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 18700-17500 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 18090. If NIFTY trades above this level then we may witness a further rally up to 18160-18210-18280 levels. However, if NIFTY trades below 18090 levels then we may see some profit booking initiating in the market, which may correct up to 18045-17970-17925 levels.

Bank Nifty

Bank Nifty started the week on a positive note and traded with extreme volatility on either side throughout the week. Bank Nifty closed at 41258 with a gain of 268 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 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 41500 level it would witness buying which would lead the index towards 41700-42000 levels. However if the index breaks below 41000 level it would witness selling which would take the index towards 40800- 40500. 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 42000-41500 with mixed 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 41275 If BANKNIFTY trades above this level then we may witness a further rally up to 41500-41740-41965 levels. However, if BANKNIFTY trades below 41275 levels then we may see some profit booking initiating in the market, it may correct up to 41035-40810-40570 levels

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