The index is moving in a Higher Top and Higher Bottom formation on the weekly chart - Axis Securities
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Nifty
Nifty started the week with an upward gap and buying momentum for most part of the week led it to close on a strong note. Nifty closed at 18065 with a gain of 441 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 weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 18150 level it would witness buying which would lead the index towards 18300-18400 levels. However if the index breaks below 17800 level it would witness selling which would take the index towards 17600- 17500. Nifty is now well placed above its 20, 50, 100 and 200 Day SMA 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 18400-17800 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 18015. If NIFTY trades above this level then we may witness a further rally up to 18140-18215-18345 levels. However, if NIFTY trades below 18015 levels then we may see some profit booking initiating in the market, which may correct up to 17935-17810-17735 levels.
Bank Nifty
Bank Nifty started the week with an upward gap and buying momentum for most part of the week led it to close in positive territory. Bank Nifty closed at 43234 with a gain of 1116 points on a weekly basis.
On the weekly chart the index has formed a sizable bullish candle forming higher High-Low compared to previous week indicating positive bias. 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 40400 level it would witness buying which would lead the index towards 43800-44200 levels. However if index breaks below 42700 level it would witness selling which would take the index towards 42400-42000. 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 44200-42500 with a positive bias
The 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 43115 If BANKNIFTY trades above this level then we may witness a further rally up to 43420-43605-43910 levels. However, if BANKNIFTY trades below 43115 levels then we may see some profit booking initiating in the market, it may correct up to 42930-42625-42435 levels.
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