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Nifty

Nifty started the week on a positive note and witnessed profit booking in the initial half. However, buying momentum at lower levels pulled the index higher, closing on a positive note at 21895 on January 12th, with a gain of 184 points on a weekly basis.

On the weekly chart, the index has formed a small bullish candle with a long lower shadow, indicating buying near the 20-day daily SMA. 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 22000 level, it would witness buying, leading the index towards 22200-22300 levels. The important support for the week is around 21700-21500. 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 22300-21500 with a positive bias.

The daily and weekly strength indicator RSI is moving upwards and is quoting above its reference line, indicating a positive bias.

The trend-deciding level for the day is 21845. If NIFTY trades above this level, then we may witness a further rally up to 21975-22060-22190 levels. However, if NIFTY trades below 21845 levels, then we may see some profit booking initiating in the market, which may correct up to 21765-21635-21550 levels.

Bank Nifty

Bank Nifty started the week on a negetive note and witnessed profit booking in the initial half; however, buying momentum at lower levels pulled the index higher to erase some of the early losses. Bank Nifty closed at 47710 on 12th January with a loss of 449 points on a weekly basis.

On the weekly chart, the index has formed a small bearish candle with a long lower shadow, indicating buying around the 47000 level. For the past five weeks, the index has been in a range bound within the 48500-47000 levels, indicating short-term consolidation. Hence, any breakout on either side will indicate further direction. The chart pattern suggests that if Bank Nifty crosses and sustains above the 47850 level, it would witness buying, leading the index towards 48000-48200 levels. However, if the index breaks below the 47600 level, it would witness selling, taking the index towards 47400-47200. Bank Nifty is trading above the 50, 100, and 200-day SMAs, which are important medium-term moving averages, indicating a positive bias in the medium term. Bank 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 Bank Nifty to trade in the range of 48200-47200 with a mixed bias.

The weekly strength indicator RSI continues to remain flat above its reference line, indicating continuation of short-term consolidation.

The trend-deciding level for the day is 47665. If BANKNIFTY trades above this level, then we may witness a further rally up to 47920-48130-48385 levels. However, if BANKNIFTY trades below 47665 levels, then we may see some profit booking initiating in the market, and it may correct up to 47455-47200-46990 levels.

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