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Nifty

Nifty started the week on a negative note and traded with extreme volatility on either side throughout the week. Nifty closed at 17186 with a loss of 129 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 continues to move in a Higher Top and Higher Bottom formation on the weekly indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 17400 level it would witness buying which would lead the index towards 17600-17800 levels. However if index breaks below 17000 level it would witness selling which would take the index towards 16700- 16500. On the daily chart, Nifty sustains above its 100 and 200 day SMAs indicating positive bias in the medium 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 17800-16500 with mixed bias.

The weekly strength indicator RSI continues to remain flat indicating absence of strength. However momentum oscillator Stochastic has turned positive from the oversold zone indicating a possible up move in the near term

The trend deciding level for the day is 17235. If NIFTY trades above this level then we may witness a further rally up to 17300-17415-17480 levels. However, if NIFTY trades below 17235 levels then we may see some profit booking initiating in the market, which may correct up to 17120-17055-16940 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 39306 with a gain of 128 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 39600 levels it would witness buying which would lead the index towards 39800-40100 levels. However if index breaks below 39200 level it would witness selling which would take the index towards 39000-38800. Bank Nifty is trading above 20, 50, 100 and 200 day SMA's 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 40100-38800 with 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 39360 If BANKNIFTY trades above this level then we may witness a further rally up to 39520-39730-39895 levels. However, if BANKNIFTY trades below 39360 levels then we may see some profit booking initiating in the market, it may correct up to 39145-38985-38770 levels

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