The trend deciding level for the day is 17395 - Axis Securities
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Nifty
Nifty started the week on a positive note and remained consolidated for most part of the week however profit booking along with selling pressure on Friday led it to close in negative territory. Nifty closed at 17413 with a loss of 181 points on a weekly basis.
On the weekly chart the index has formed a Bearish candle with an upper shadow indicating selling pressure at higher levels.. The index is approaching its crucial support zone of the previous swing low which is placed at 17250 level. The chart pattern suggests that if Nifty crosses and sustains above 17500 level it would witness buying which would lead the index towards 17600-17800 levels. However if the index breaks below 17250 level it would witness selling which would take the index towards 17000-16900. Nifty is trading below 20, 50, 100 and 200 day SMA which are important short term moving averages, indicating negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 17800-16900 with mixed bias.
The daily and weekly strength indicator RSI is moving downward and is quoting below its reference line indicating negative bias.
The trend deciding level for the day is 17395. If NIFTY trades above this level then we may witness a further rally up to 17470-17525-17595 levels. However, if NIFTY trades below 17395 levels then we may see some profit booking initiating in the market, which may correct up to 17340-17270-17215 levels.
Bank Nifty
Bank Nifty started the week on a positive note and remained consolidated for most part of the week however Friday's sell-off led the index to close in negative territory. Bank Nifty closed at 40485 with a loss of 766 points on a weekly basis.
On the weekly chart the index has formed a “Dark cover cloud (DCC)” bearish candlestick pattern indicates potential short term reversal on the index. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 40700 level it would witness buying which would lead the index towards 40800-41000 levels. However if index breaks below 40350 level it would witness selling which would take the index towards 40100-39800. Bank Nifty is now well placed above its 200-Day SMA indicating positive bias in the medium 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 41000-39800 with mixed bias.
The daily and weekly strength indicator RSI is in bearish mode and sustaining below the 50 mark which supports bearish sentiments ahead.
The trend deciding level for the day is 40555 If BANKNIFTY trades above this level then we may witness a further rally up to 40770-41055-41265 levels. However, if BANKNIFTY trades below 40555 levels then we may see some profit booking initiating in the market, it may correct up to 40270-40060-39775 levels.
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