Nifty – The index closed 5 weeks positive in row. This move up is move than any normal short covering as of now. As long as 10610 levels are saved the move up is expected to continue. In the coming weeks 10830 and 10930 levels may be tested.
There is no weakness as of now. The RSI is supporting the move up as momentum on weekly charts are looking good. While the fact that cannot be ignored on the weekly charts is, the prices are running into a gap area 10735 levels. Also the RSI is at the 60 levels, to maintain this move up, the RSI have to maintain this.
Bank Nifty – During the last week, the bank nifty was under performing the Nifty. This week the Bank Index bounced back sharply and came in par with the Nifty.
The weekly bullish engulfing candle with volumes further indicate the strength in the move. As long as Bank Nifty trades above 25240 levels the index will be bullish, 25670 and 25910 levels are expected.
Bharat Jhunjhunwala MFTA, CMT, CFTe, MSTA