The chart pattern suggests that if Nifty crosses and sustains above 18000 level - Axis Securities
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Nifty
Nifty started the week on a flat note but continued its previous week's negative momentum to end the week on a weak note. Nifty closed at 17807 with a loss of 462 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 indicating weakness at current levels. The index broke below the upward sloping trendline negative trend in a short term. The chart pattern suggests that if Nifty crosses and sustains above 18000 level it would witness buying which would lead the index towards 18200-18500 levels. However if the index breaks below 17600 level it would witness selling which would take the index towards 17300-17100. Nifty is trading above its long term averages 200 day SMA which indicate trem is positive in the medium to long term. Whereas the index is trading below short term moving averages of 20, 50 and 100 SMA indicating negative 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 18500-17100 with negative bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines indicating negative bias in a short term.
The trend deciding level for the day is 17880. If NIFTY trades above this level then we may witness a further rally up to 17980-18150-18250 levels. However, if NIFTY trades below 17880 levels then we may see some profit booking initiating in the market, which may correct up to 17705-17610-17435 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 41668 with a loss of 1551 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 had broken below its upward sloping trendline indicating negative momentum in short term. The chart pattern suggests that if Bank Nifty crosses and sustains above 41900 level it would witness buying which would lead the index towards 42200-42500 levels. However if the index breaks below 41500 level it would witness selling which would take the index towards 41300-41000. Nifty is trading above its long term averages 100 and 200 day SMA which indicate trem is positive in the medium to long term. Whereas the index is trading below short term moving averages of 20 and 50 SMA indicating negative bias in the short 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 42500-41000 with negative bias.
The weekly strength indicator RSI is in negative terrain and are below their respective reference lines indicating negative bias in short term
The trend deciding level for the day is 41830 If BANKNIFTY trades above this level then we may witness a further rally up to 42065-42460-42695 levels. However, if BANKNIFTY trades below 41830 levels then we may see some profit booking initiating in the market, it may correct up to 41435-41200-40805 levels
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