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BANK NIFTY: 35364.65 weekly change (2.33%)

Observation

* On the monthly time frame we can see that the BANK NIFTY has been in a strong bullish phase. In the month of APRIL 2021 the index found support near the 30400 mark which is placed close to the 38.2% retracement level of the previous rise from 20404-37708 (Marked in Blue) and continues to move higher

* On the weekly time frame we can see that the prices have been more or less in a range for almost 5 weeks and have been moving between the 35800– 33900 mark but still it has managed to sustain above its 20 week SMA which indicates bullish undertone of the sector.

* On the daily chart, the Bank NIFTY has formed ‘CIP formation’ (previous resistance now became support) near 33900 - 34100 range and resumed its upward move which confirms bullish sentiments of the sector.

* On the indicator front the RSI plotted on the weekly chart can be seen placed above the 50 mark since September 2020, currently it can be seen moving higher, pointing towards the ongoing tug of war between the bulls and the bears, which at the momentum seems to be biased towards the bulls.

* On the upside 35810 (recent swing high) will act as a resistance level above which we can expect the 36497 (Mar 2021 high) followed by 37708 (Life Time High) to be tested.

* 33908 (2 week low) will act as a key support level, if this is breached we can expect 33272 (swing low) to be tested.

Inference & Expectations

*- From the long term perspective, the BANK NIFTY seems to be in a strong bullish phase.

* The short and the medium term charts still in a consolidation range of 35810 - 33908 levels.

* Looking at the price action and the technical parameters mentioned in the observation part we can expect the prices to be in a range between the 35810-33908 for the short to medium term.

* However the primary trend of the BANK NIFTY is bullish so if it breaches resistance level of 35810 then we can expect the prices to move higher towards 36497 and eventually 37708 mark.

* Our Bullish view will be negated if the prices breach below 33908 mark.

NIFTY IT: 29210 weekly change (2.69%)

Observation

* On the monthly time frame the NIFTY IT index has been in a strong bullish phase, and has managed to outperform the benchmark NIFTY 50 which indicates the strength of the sector.

* On the weekly charts, the prices have given a breakout ‘upward slopping Wedge’ pattern couple of weeks back and have managed to sustain above the resistance level. In the last week, the index gained momentum and tested a new life time high which shows strong bullish undertone of the sector.

* On the indicator front the MACD can plotted on the weekly time frame can be seen placed above the zero line and is currently forming a bullish crossover, indicating the presence of bullishness in the trend. The RSI also can be seen placed above the 50 mark and moving higher, indicating increasing positive momentum in the prices.

* The Bollinger bands plotted on the weekly time frame can be seen expanding as the prices move higher, indicating increasing volatility in the uptrend.

* Going ahead the we can expect the index to test the 30340 (38.2% extension level of the rise from 10991-27127), if this level is breached we can expect the prices to move higher towards 32300 (50% extension level of the rise from 10991-27127). 

* The Key support level to watch out for on the downside will be 28083 (Weekly low). If this level is breached we can expect the prices to move lower towards 26737 (June 2021 Low).

Inference & Expectations

* From a medium and long term perspective the NIFTY IT index has maintained its higher high higher low pattern, indicating that the long term trend of the index is bullish.

* Looking at the price action of the past few weeks, we believe the NIFTY IT index has maintained its uptrend, we expect the prices to move higher and test the 30340 levels, followed by 32300 mark.

* Our bullish view on the index will be negated of the prices breach below the previous week low of 28083 levels. 

* If the Index breaches 28083 mark then it may enter into a consolidation phase or it may further move down towards 26353 mark.

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