The index continues to move in a Higher Top and Higher Bottom formation on the weekly indicating positive bias - Axis Securities
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Nifty
Nifty started the week on a flat note and witnessed selling pressure throughout the week dragged index to close on negative notes. Nifty closed at 18497 with a loss of 200 points on a weekly basis.
On the weekly chart index has formed a bearish candle however it remained restricted within previous week HighLow range indicating absence of strength on either side. The index continues to move in a Higher Top and Higher Bottom formation on the weekly 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 18900-19200 levels. However if the index breaks below 18300 level it would witness selling which would take the index towards 18100-17900. 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 19200-17900 with 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 some profit booking in the near term
The trend deciding level for the day is 18525. If NIFTY trades above this level then we may witness a further rally up to 18640-18780-18890 levels. However, if NIFTY trades below 18525 levels then we may see some profit booking initiating in the market, which may correct up to 18385-18270-18130 levels
Bank Nifty
Bank Nifty started the week on a positive note and traded with extreme volatility on either side throughout the week. Bank Nifty closed at 43633 with a gain of 530 points on a weekly basis.
On the weekly chart the index has formed a small Bullish candle forming higher High-Low formation as compared to previous week 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 Bank Nifty crosses and sustains above 43850 level it would witness buying which would lead the index towards 44000-44200 levels. However if index breaks below 43400 level it would witness selling which would take the index towards 43200-42900. 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 44200- 42900 with mixed bias.
The daily and weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias.
The trend deciding level for the day is 43615 If BANKNIFTY trades above this level then we may witness a further rally up to 43870-44110-44360 levels. However, if BANKNIFTY trades below 43615 levels then we may see some profit booking initiating in the market, it may correct up to 43380-43125-42885 levels
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