Published on 7/12/2017 9:48:04 AM | Source: Angel Broking Pvt Ltd
The Nifty Bank index are placed around 24695 and 24620 - Angel
Sensex (32597) / Nifty (10044)
Finally, cues from US markets were in-sync with our markets as well as other major Asian bourses. We had a gap down opening and then a small patch of consolidation ahead of the RBI monetary policy. But, once again a ‘Status Quo’ (in-line with consensus) from this event resulted into further weakness in the penultimate hour to end the session tad below the 10050 mark.
Due to yesterday’s correction, the Nifty has closed at the twomonth low, which was very much in-line with our recent expectations. On the daily chart, we initiated ‘sell’ in index around 10380 – 10350 with an anticipation of weakness and now we can see confirmation of short term reversal in the form of ‘Lower Top Lower Bottom’ on daily chart for the first time in last several months. Thus, we are now gaining further conviction over recent bearish stance on the market. Now, it’s a matter of time that we would see index entering into a fourdigit territory. For the coming session, 10076 – 10104 would be seen as immediate resistance zone. In case of any extended bounce also, traders are advised not to make any kind of bottom fishing and rather use such relief rallies to exit existing long positions.
Nifty Bank Outlook - (24852)
The Nifty Bank index continued its corrective move and lost another percent in yesterday's session. The outcome of RBI policy had no significant impact on the index movement as they kept the key rates unchanged, much in line with market expectations. However, the correction in the index is much on our expected lines and as we have been mentioning since last few days, we expect the Nifty Bank index to correct upto 24700 (89DEMA). We continue with our cautious approach on the index and advice traders to avoid bottom fishing. Although, since the momentum setups on the lower time frame chart are in oversold territory, momentum traders with short positions can look to book profits around the target of 24700. The intraday supports for the Nifty Bank index are placed around 24695 and 24620 whereas resistances are seen around 24975 and 25050.
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