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Nifty

Nifty started the week with an upward gap, and buying momentum for most of the week led it to close on a strong note. Nifty closed at 26179 on 27th September with a gain of 388 points on a weekly basis. On the weekly chart, the index has formed a long bullish candle, creating a higher high-low compared to the previous week, and has closed above the previous week's high, indicating a positive bias. The index continues to move in a higher top and higher bottom formation on the weekly chart, indicating a positive bias in the medium term. The chart pattern suggests that if Nifty crosses and sustains above the 26400 level, it would witness buying, leading the index towards 26500-26700 levels. However, if the index breaks below the 26000 level, it would witness selling, taking the index towards 25800-25600. On the daily chart, Nifty sustaining above its 20, 50, 100, and 200-day SMAs indicates a positive bias in the short term. Nifty continues to remain in an uptrend in the medium term. Hence, 'buying on dips' continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 26700-25600 with a positive bias. The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias. The trend-deciding level for the day is 26205. If Nifty trades above this level, we may witness a further rally up to 26255-26330-26380 levels. However, if Nifty trades below 26205, we may see some profit booking initiating in the market, which may correct Nifty down to 26130-26075-26000 levels.

Bank Nifty

Bank Nifty started the week on a positive note and remained extremely volatile on either side throughout the week. Bank Nifty closed at 53834 on 27th September with a gain of 41 points on a weekly basis. On the weekly chart, the index has formed a 'Shooting Star' candlestick pattern, characterized by a small bearish body and a long upper shadow, indicating selling pressure at the higher level. The index is moving in a higher top and higher bottom formation on the weekly chart, indicating a positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 54000 level, it would witness buying, leading the index towards 54300-54500 levels. However, if the index breaks below the 53500 level, it would witness selling, taking the index towards 53350-53000. Bank Nifty is trading above the 20, 50, 100, and 200-day SMAs, which are important short-term moving averages, indicating a positive bias in the short to medium term. Bank Nifty continues to remain in an uptrend in the short term. Hence, 'buying on dips' continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 54500-53000 with a mixed bias. The weekly strength indicator, RSI, is above its respective reference lines, indicating a positive bias. The trend-deciding level for the day is 53980. If Bank Nifty trades above this level, we may witness a further rally up to 54195-54555-54770 levels. However, if Bank Nifty trades below 53980, we may see some profit booking initiating in the market, and it may correct down to 53620-53405-53045 levels.

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