Nifty and Banknifty view

Nifty started this week with bearish sentiments. In today’s trading session, Nifty closed at the level of 17,117.60 with a loss of 169.45 points on the daily chart.

Nifty view 

Nifty started this week with bearish sentiments. In today’s trading session, Nifty closed at the level of 17,117.60 with a loss of 169.45 points on the daily chart. As the index failed to sustain the 17,400 levels, it closed below its previous low.  

The index had witnessed a trendline breakout as of March 14, 2022. However, the index might retest its support and pull back. Moreover, it witnessed a bearish engulfing candlestick pattern on the daily basis, showing some weakness ahead.  

The chart pattern suggests that if Nifty crosses and sustains above 17,400 levels, it would witness buying, which would lead the index towards the levels of 17,700-17,800. However, if the index breaks below the 17,000 levels, it would witness selling that would take the index towards the 16,800 levels.  

The index is trading above its long-term moving average i.e., 200 DMA while the 14-period RSI is at 54 on the daily chart.  

For the week, we expect Nifty to trade in the range of 17,800-16,800 with a positive bias.  

Bank Nifty  view

In today’s trading session, Bank Nifty opened with a gap-up while selling pressure was seen throughout the day, due to which, the index fell to its previous day’s low. The index couldn’t cross above 36,600 levels, which led the index to close at 36,018.50 levels.  

Meanwhile, Bank Nifty witnessed a bearish engulfing candlestick pattern on the daily basis. The bearish engulfing candlestick pattern, formed with a large bearish candle, shows some weakness ahead.  

The chart pattern suggests that if Bank Nifty crosses and sustains above 36,700 levels, it would witness buying that would lead the index towards the 37,000-37,250 levels. However, if the index breaks below the 36,000 levels, it would witness selling, which would take the index towards the 35,750-35,000 levels. 

The 14-period RSI is near 50 on the daily chart while the index is trading below its long-term moving averages thereby, showing some bearish sentiments ahead.