Nifty started the week with an upward gap and buying momentum for most of the week led it to close on a strong note - Axis Securities
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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 20969 on 08th December with a gain of 702 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 also closed above the same, 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 21000 level, it would witness buying, leading the index towards 21200-21400 levels. Important support for the week is around 20700-20600.
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 21400-20600 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 20945. If NIFTY trades above this level, then we may witness a further rally up to 21030-21090-21175 levels.
However, if NIFTY trades below 20945 levels, then we may see some profit booking initiating in the market, which may correct up to 20885-20805-20745 levels.
Bank Nifty
Bank Nifty started the week with an upward gap, and buying momentum for most of the week led it to close in positive territory. Bank Nifty closed at 47262 on 08th December with a gain of 2448 points on a weekly basis. On the weekly chart, the index has formed a sizable bullish candle, indicating a higher high-low formation compared to the previous week and a close above resistance around 46350, signifying 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 Bank Nifty crosses and sustains above 47350 levels, it would witness buying, leading the index towards 47500-47800 levels. However, if the index breaks below 47100 levels, it would witness selling, taking the index towards 47000-46800.
Bank 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. 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 47800-46800 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 47120. If BANKNIFTY trades above this level, then we may witness a further rally up to 47445-47630-47955 levels. However, if BANKNIFTY trades below 47120 levels, then we may see some profit booking initiating in the market, and it may correct up to 46935-46610-46425 levels.
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