Nifty And Bank Nifty Weekly Technical View :

Nifty Weekly View :

In last week Nifty had moved upward from its bottom level, however in this week Nifty rally had paused and remained below the last week high and lost 113 points.

On weekly chart 7669 levels could act as strong support for Nifty which is 100 weekly EMA and 8160 levels could act as strong resistance which is its 50 weekly EMA.

MACD moving averages has given negative crossover and slipped below the zero levels whereas MACD histogram has remained flat.

Momentum indicator RSI has sustained at 41 levels, as levels of 40 is a very crucial for RSI. At this levels there could be two possibilities first one is RSI could slip below 40 levels which is negative confirmation for prices and second possibilities is RSI could be bounce at higher levels which is a positive confirmation for prices.

Conclusion: On the basis of EMA, MACD and RSI indicator we expect that in the forthcoming week Nifty would be volatile and above 7930 could be a good buying opportunities. One can book profit at 8050 levels where below 7760 levels could be a good selling opportunities and you can book profit at 7650 levels. 

Bank Nifty Weekly View:

Bank Nifty also gave sharp up move rally in last week, but in this week Bank Nifty was very volatile and tested 50 weekly EMA at 17578 levels but failed to sustain at this levels and closed at 17196 levels.

On weekly chart Bank Nifty has formed “Long leg dogi” candlesticks which means there was strong tug of war between buyers and sellers and finally there was a standoff position and the trading session had closed with indecision. Generally dogi sign could give the pre-intimation of trend reversal.

The Red horizontal line act as strong support of previous up-trend has turn strong resistance now if Bank Nifty will sustain above this levels than we could see again strong up move else we will see strong correction in Bank Nifty till 15750 levels. 

MACD moving averages has given negative crossover and slip below the zero levels whereas MACD histogram has still sustain flat.

We have seen that Bank Nifty prices have increases but volume was declined, which shows that uptrend has started to lose its strength.

RSI is in between 40-50 range which means there is no clear clue from RSI.

Conclusion: On the basis of EMA, MACD and volume we predict that forthcoming week we will see strong slump in Bank Nifty if it goes below 16750 levels it would be a good selling opportunities and one can book profit at 15750 levels.

Disclaimer : This is not a recommendation to buy or sell, it is just an index view which will help you in near term.