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Nifty

Nifty started the week on a negative note however buying momentum at lower levels recovered some of the earlier losses to close on a flat note. Nifty closed at 17539 with a loss of 19 points on a weekly basis.

On the weekly chart the index has formed a small Bullish candle carrying a long upper shadow indicating resistance at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 17800 level it would witness buying which would lead the index towards 18000-18300 levels. However if the index breaks below 17400 level it would witness selling which would take the index towards 17200-17000. Nifty is now well placed above its 50, 100 and 200 Day SMA 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 18300-17400 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 17555. If NIFTY trades above this level then we may witness a further rally up to 17630-17720-17795 levels. However, if NIFTY trades below 17555 levels then we may see some profit booking initiating in the market, which may correct up to 17465-17385-17295 levels.

Banknifty

Bank Nifty started the week on a negative note but witnessed buying at lower levels to end the week on a positive note. Bank Nifty closed at 39421 with a gain of 434 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. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 39800 levels it would witness buying which would lead the index towards 40200-41000 levels. However if index breaks below 38800 level it would witness selling which would take the index towards 38500-37800. 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 41000-38500 with mixed bias.

The 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 39405 If BANKNIFTY trades above this level then we may witness a further rally up to 39610-39800-40005 levels. However, if BANKNIFTY trades below 39405 levels then we may see some profit booking initiating in the market, it may correct up to 39215-39010-38820 levels.

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