The daily and weekly strength indicator RSI has turned flat indicating lack of strength - Axis Securities
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Nifty
Nifty started the week on a flat note and buying momentum throughout the week led it close on a strong note.On 26th May, Nifty closed at 18499 with a gain of 296 points on a weekly basis.
On the weekly chart the index has formed a long bullish candle forming higher High-low compared to previous week and has closed above previous week's high indicating positive bias. 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 below 18350 level it would witness selling which would take the index towards 18200- 18000. 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 18800-18200 with a positive bias.
The weekly strength indicator RSI is above its respective reference lines indicating positive bias
The trend deciding level for the day is 18445. If NIFTY trades above this level then we may witness a further rally up to 18560-18620-18735 levels. However, if NIFTY trades below 18445 levels then we may see some profit booking initiating in the market, which may correct up to 18385-18270-18210 levels.
Bank Nifty
Index opened on flat note and traded with extreme volatility on either side however buying support at lower levels pulled index higher to end flat note. On 26th May, Bank Nifty closed at 44018 with a gain of 49 points on a weekly basis.
On the weekly chart the index has formed a small Bullish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. 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 43500-43400. 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 44500-43400 with a mixed bias
The daily and weekly strength indicator RSI has turned flat indicating lack of strength.
The trend deciding level for the day is 43890 If BANKNIFTY trades above this level then we may witness a further rally up to 44195-44370-44675 levels. However, if BANKNIFTY trades below 43890 levels then we may see some profit booking initiating in the market, it may correct up to 43715-43415-43235 levels
To Read Complete Report & Disclaimer Click Here
For More Axis Securities Disclaimer https://simplehai.axisdirect.in/disclaimer-home
SEBI Registration number is INZ000161633
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime
