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Nifty

Nifty started the week on a flat note however selling pressure throughout the week led index to end on a weak note. Nifty closed at 17466 with a loss of 478 points on a weekly basis

On the weekly chart the index has formed a long Bearish candle forming lower High-Low compare to previous week indicating weaknes at current levels. The index is moving in a Lower Top and Lower Bottom formation on the weekly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 17600 level it would witness buying which would lead the index towards 17800-18000 levels. However if index breaks below 17300 level it would witness selling which would take the index towards 17150-17000. Nifty is trading above 200 day SMA's which is important short term moving average, 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 18000-17000 with mixed bias.

The weekly strength indicator RSI is moving downwards and is quoting below its reference line indicating negative bias.

The trend deciding level for the day is 17495. If NIFTY trades above this level then we may witness a further rally up to 17570-17675-17750 levels. However, if NIFTY trades below 17495 levels then we may see some profit booking initiating in the market, which may correct up to 17390-17320-17215 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 39909 with a loss of 1222 points on a weekly basis.

On the weekly chart the index has formed a long Bearish candle forming lower High-Low compared to previous week and has closed below its low indicating weakness at current levels. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 40150 level it would witness buying which would lead the index towards 40350-40500 levels. However if index breaks below 39800 level it would witness selling which would take the index towards 39600-39300. Bank Nifty is now well placed above its 200-Day SMA indicating positive bias in the medium term. Bank 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 Bank Nifty to trade in the range of 40500-39300 with mixed bias.

The weekly strength indicator RSI is in negative terrain and are below their respective reference lines indicating negative bias

The trend deciding level for the day is 40025 If BANKNIFTY trades above this level then we may witness a further rally up to 40230-40555-40760 levels. However, if BANKNIFTY trades below 40025 levels then we may see some profit booking initiating in the market, it may correct up to 39705-39495-39175 levels.

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