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Nifty

Nifty started the week on a positive note but witnessed selling at higher levels to end the week on flat note. On 5 th May, Nifty closed at 18069 with a gain of 4 points on a weekly basis.

On the weekly chart the index has formed a “shooting star” candlestick pattern indicates potential short term profit booking on the index. 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 Nifty crosses and sustains above 18150 level it would witness buying which would lead the index towards 18300-18500 levels. However if the index breaks below 18000 level it would witness selling which would take the index towards 17850-17600. 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 18500-17600 with a mixed bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned flat indicating absence of strength on either side

The trend deciding level for the day is 18115. If NIFTY trades above this level then we may witness a further rally up to 18170-18275-18335 levels. However, if NIFTY trades below 18115 levels then we may see some profit booking initiating in the market, which may correct up to 18010-17950-17850 levels

Bank Nifty

Bank Nifty started the week on a positive note but witnessed selling at higher levels to end the week on weak note. Bank Nifty closed at 42661 with a loss of 573 points on a weekly basis.

On the weekly chart the index has formed a “Dark cover cloud (DCC)” candlestick pattern indicates potential short term profit booking on the index. The index continues to move 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 42800 level it would witness buying which would lead the index towards 43000-43200 levels. However if index breaks below 42500 level it would witness selling which would take the index towards 42300-42000. 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 43200-42000 with a mixed bias.

The weekly strength indicator RSI has turned flat in an overbought zone indicating lack of strength and the momentum indicator Stochastic given a negative crossover in an overbought zone indicating short term profit booking is expected.

The trend deciding level for the day is 42945 If BANKNIFTY trades above this level then we may witness a further rally up to 43305-43950-44310 levels. However, if BANKNIFTY trades below 42945 levels then we may see some profit booking initiating in the market, it may correct up to 42300-41940-41295 levels

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