The chart pattern suggests that if Nifty crosses and sustains above 18300 level - Axis Securities
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Nifty
Nifty started the week on a flat note and witnesses a buying momentum for most part of the week that led the index to close on a positive note. Nifty closed at 18105 with a gain of 299 points on a weekly basis.
On the weekly chart index has formed a bullish candle and remained restricted within previous week's High-Low range indicating lack of strength on either side. The index continues to move in a Higher Top and Higher Bottom formation on the weekly indicating positive bias in the medium term. The chart pattern suggests that if Nifty crosses and sustains above 18300 level it would witness buying which would lead the index towards 18500-18800 levels. However if the index breaks below 18000 level it would witness selling which would take the index towards 17800- 17500. Nifty is trading above its long term averages 100 and 200 day SMA which indicates trend 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. 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 18800-17500 with mixed bias.
The weekly strength indicator RSI and the momentum indicator Stochastic has turned flat indicating lack of strength.
The trend deciding level for the day is 18150. If NIFTY trades above this level then we may witness a further rally up to 18220-18335-18405 levels. However, if NIFTY trades below 18150 levels then we may see some profit booking initiating in the market, which may correct up to 18035-17965-17850 levels.
Bank Nifty
Bank Nifty started the week on a flat note and buying momentum for most part of the week led it to close on a positive note. Bank Nifty closed at 42986 with a gain of 1318 points on a weekly basis.
On the weekly chart index has formed a bullish candle and remained restricted within previous week's High-Low range indicating lack of strength on either side. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 43300 level it would witness buying which would lead the index towards 43600-43800 levels. However if index breaks below 42700 level it would witness selling which would take the index towards 42500-42300. Bank Nifty is trading above 50, 100 and 200 day SMA which are important medium term moving averages, indicating positive bias in the medium to long 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 43800-42300 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 43080 If BANKNIFTY trades above this level then we may witness a further rally up to 43330-43670-43920 levels. However, if BANKNIFTY trades below 43080 levels then we may see some profit booking initiating in the market, it may correct up to 42740-42490-42150 levels.
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