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 but witnessed selling at higher levels to end the week on positive note. On 9 th June, Nifty closed at 18563 with a gain of 29 points on a weekly basis.
On the weekly chart the index has formed a Bearish candle with an upper shadow indicating selling at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias in a medium term. 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 the index breaks below 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 18600. If NIFTY trades above this level then we may witness a further rally up to 18640-18720-18765 levels. However, if NIFTY trades below 18600 levels then we may see some profit booking initiating in the market, which may correct up to 18520-18475-18400 levels.
Bank Nifty
Bank Nifty started the week on a positive note but witnessed selling at higher levels to end the week on flat note. On 9th June, Bank Nifty closed at 43989 with a gain of 51 points on a weekly basis.
On the weekly chart the index has formed a Bearish candle with a long upper shadow indicating selling at higher levels. 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 a profit booking in the near term
The trend deciding level for the day is 44045 If BANKNIFTY trades above this level then we may witness a further rally up to 44160-44335-44450 levels. However, if BANKNIFTY trades below 44045 levels then we may see some profit booking initiating in the market, it may correct up to 43875-43760-43585 levels.
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