The chart pattern suggests that if Bank Nifty crosses and sustains above 44200 level - Axis Securities
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Nifty
Nifty started the week on a positive note and remained consolidated for most part of the week within 18662-18464 levels representing lack of strength.On 2nd June, Nifty closed at 18534 with a gain of 35 points on a weekly basis
On the weekly chart index has formed a bearish candle forming higher High-Low formation indicating positive bias however it indicates pause after a strong rally. 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 18700 level it would witness buying which would lead the index towards 18900-19000 levels. However if index breaks belo however 18450 level it would witness selling which would take the index towards 18300-18200. 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 19000-18200 with a mixed bias.
The weekly strength indicator RSI is above its respective reference lines indicating positive bias
The trend deciding level for the day is 18530. If NIFTY trades above this level then we may witness a further rally up to 18580-18625-18675 levels. However, if NIFTY trades below 18530 levels then we may see some profit booking initiating in the market, which may correct up to 18485-18435-18390 levels
Bank Nifty
Bank Nifty commenced the week with an upward gap and remained consolidated for most part of the week. On 2 nd June, Bank Nifty closed at 43938 with a loss of 80 points on a weekly basis.
On the weekly chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction at resistance level. 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 44200 level it would witness buying which would lead the index towards 44350-44500 levels. However if index breaks below 43800 level it would witness selling which would take the index towards 43700-43500. 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 44500-43500 with a mixed bias.
The weekly strength indicator RSI continues to remain flat above its reference line indicating positive bias. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or profit booking in the near term
The trend deciding level for the day is 43945 If BANKNIFTY trades above this level then we may witness a further rally up to 44080-44225-44355 levels. However, if BANKNIFTY trades below 43945 levels then we may see some profit booking initiating in the market, it may correct up to 43805-43670-43530 levels.
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