Nifty started the week on a flat note and remained consolidated within 19875-19670 levels - Axis Securities
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Nifty
Nifty started the week on a flat note and remained consolidated within 19875-19670 levels throughout the week, indicating a lack of strength on either side. Nifty closed at 19795 on 24th November with a gain of 63 points on a weekly basis.
On the weekly chart, the index has formed a 'Doji' candlestick formation, indicating indecisiveness among market participants regarding the direction. The index is moving in a higher top and higher bottom formation on the daily chart, indicating a positive bias. The chart pattern suggests that if Nifty crosses and sustains above 19900 level, it would witness buying which would lead the index towards 20000-20200 levels. However, if the index breaks below 19650 level, it would witness selling, which would take the index towards 19500-19400. Nifty is trading above 20, 50, 100, and 200-day SMAs, which are important short-term moving averages, indicating a positive bias in the short to medium 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 20200-19400 with a mixed bias.
The weekly strength indicator RSI continues to remain flat, indicating the absence of strength. However, the momentum oscillator Stochastic has turned positive from the oversold zone, indicating a possible up move in the near term.
The trend-deciding level for the day is 19800. If NIFTY trades above this level, then we may witness a further rally up to 19830-19865-19895 levels. However, if NIFTY trades below 19800 levels, then we may see some profit booking initiating in the market, which may correct up to 19765-19735-19700 levels.
Bank Nifty
Bank Nifty started the week on a flat note and remained extremely volatile on either side throughout the week. Bank Nifty closed at 43769 on 24th November with a gain of 185 points on a weekly basis.
On the weekly chart, the index has formed a bullish candle with a lower shadow indicating support around the 200 SMA. For the past three weeks, the index has been consolidating within the 44000-43500 levels, indicating shortterm consolidation. Hence, any breakout on either side will indicate further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 43800 levels, it would witness buying, which would lead the index towards 44000-44200 levels. However, if the index breaks below 43500 levels, it would witness selling, which would take the index towards 43400-43200. Bank Nifty is trading above 20 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, so buying on dips continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 44200-43200 with a mixed bias.
The weekly strength indicator RSI continues to remain flat, indicating the absence of strength.
The trend-deciding level for the day is 43715. If BANKNIFTY trades above this level, then we may witness a further rally up to 43860-43955-44100 levels. However, if BANKNIFTY trades below 43715 levels, then we may see some profit booking initiating in the market, and it may correct up to 43620-43475-43380 levels
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