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Nifty

Nifty started the week on a negative note but witnessed buying at lower levels, ending the week on a positive note. Nifty closed at 22957 on 24th May with a gain of 455 points on a weekly basis.

On the weekly chart, the index has formed a long bullish candle, forming a higher high-low compared to the previous week, and has closed above the previous week's high, indicating a positive bias. 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 the 23200 level, it would witness buying, leading the index towards 23400-23500 levels. However, if the index breaks below the 22800 level, it would witness selling, taking the index towards 22600-22500. On the daily chart, Nifty sustaining above its 20, 50, 100, and 200-day SMAs indicates a positive bias in the medium 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 23500-22500 with a positive bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines, indicating a positive bias.

The trend-deciding level for the day is 22965. If Nifty trades above this level, we may witness a further rally up to 23020-23080-23140 levels. However, if Nifty trades below 22965, we may see some profit booking initiating in the market, which may correct Nifty up to 22900-22845-22785 levels.

Bank Nifty

Bank Nifty started the week on a negative note; however, buying momentum throughout the week led the index to close on a strong note. Bank Nifty closed at 48972 on 24th May with a gain of 772 points on a weekly basis.

On the weekly chart, the index has formed a bullish candle, forming 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 daily chart, indicating a positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 49200 level, it would witness buying, leading the index towards 49400-49500 levels. However, if the index breaks below the 48700 level, it would witness selling, taking the index towards 48500-48300. Bank Nifty is trading above the 20, 50, 100 and 200-day SMAs, which are important shortterm 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 49500-48300 with a positive bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines, indicating a positive bias. The trend-deciding level for the day is 48890. If Bank Nifty trades above this level, we may witness a further rally up to 49135-49300-49545 levels.

However, if Bank Nifty trades below 48890, we may see some profit booking initiating in the market, and it may correct up to 48725-48480-48320 levels.

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