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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 as well as close above all time high. Nifty closed at 18696 with a gain of 183 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 closed above previous week's high indicating positive bias. 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 18900 level it would witness buying which would lead the index towards 19100-19300 levels. However if the index breaks below 18500 level it would witness selling which would take the index towards 18300-18100. 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 19300-18100 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 18705. If NIFTY trades above this level then we may witness a further rally up to 18770-18850-18915 levels. However, if NIFTY trades below 18705 levels then we may see some profit booking initiating in the market, which may correct up to 18630-18565-18485 levels

Bank Nifty

Bank Nifty started the week on a negative note and remained in a narrow range throughout the week, indicating lack of strength on either side. Bank Nifty closed at 43104 with a gain of 120 points on a weekly basis.

On the weekly chart the index has formed a small bullish candle with upper shadow indicating resistance at higher levels. 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 43300 level it would witness buying which would lead the index towards 43500-43700 levels. However if index breaks below 42800 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 weekly strength indicator RSI is above its respective reference lines 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 43180-43250-43370 levels. However, if BANKNIFTY trades below 43060 levels then we may see some profit booking initiating in the market, it may correct up to 42985-42865-42790 levels

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