The weekly strength indicator RSI is above its respective reference lines indicating positive bias - 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 18826 on 16th June with a gain of 263 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 19000 level it would witness buying which would lead the index towards 19100-19200 levels. However if index breaks below 18700 level it would witness selling which would take the index towards 18600- 18500. 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 19200-18500 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 18800. If NIFTY trades above this level then we may witness a further rally up to 18890-18955-19045 levels. However, if NIFTY trades below 18800 levels then we may see some profit booking initiating in the market, which may correct up to 18735-18645-18580 levels.
Bank Nifty
Bank Nifty started the week on a flat note and remained in a narrow range throughout the week, indicating lack of strength on either side. Bank Nifty closed at 43938 on 16th June with a loss of 51 points on a weekly basis.
On the weekly chart the index has formed a small bearish 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 43700-43500. Bank Nifty is trading above 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 44500-43500 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 a downmove in the near term
The trend deciding level for the day is 43855 If BANKNIFTY trades above this level then we may witness a further rally up to 44170-44400-44715 levels. However, if BANKNIFTY trades below 43855 levels then we may see some profit booking initiating in the market, it may correct up to 43620-43305-43075 levels.
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