IGI Logo

Sensex (62411) / Nifty (18561)

Our domestic market plunged post the announcement of the rate hike by the RBI Governor, which was majorly in line with the market expectations. The benchmark index Nifty50 descended towards the 18560 odd levels in intraday trade and struggled throughout the trading session. By the penultimate hour, a sell-off triggered that dragged the index lower towards the sacrosanct support of 18500. Post all hustles, Nifty concluded the day in red with a cut of 0.44 percent and settled a tad above the 18550 level.

Technically speaking, a sign of timidness is evident as there is no cue of follow-up buying in the index to levitate the sentiments. The recent developments construe a motion of tentativeness among the market participants as Nifty plunged to test the critical support zone. However, till the sacrosanct of 18500 is withheld, the view of buy on dip and sell on rise remains unscathed. The lack of firm buying is the only worrisome, signifying the indecisiveness among the bulls to retract the market. On the higher end, a decisive closure above 18700 could only bring some cheer back into the market, and then we may expect the northward journey to continue. Meanwhile, any breach below 18500 could dampen the sentiments further and Nifty could plunge towards the next support of 18400.

.

Nifty Bank Outlook (43099)

On the RBI policy day, Bank Nifty started on a flat and during the first half an hour witnessed positive traction. This move however was short-lived as after the policy announcement we witnessed profit booking to eventually slip below the 43000 levels. Subsequently, in the second half, there was no major traction and after trading sideways the bank nifty ended flat tad below 43100 levels.

Despite being a key monetary policy day, there's no major change in the price structure and prices continue to consolidate in a range. On the intraday hourly chart, the range is getting squeezed and very soon one can expect a momentum move after the recent consolidation phase. Till then traders should continue with stockspecific action as there is no lack of momentum on that front and considering the primary trend as positive one should continue with the bullish bets with a strict stop loss. On the weekly expiry day, key levels to watch out for would be around 42940 and 42740 as support whereas on the upside 43240 and 43400 is immediate resistance.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Above views are of the author and not of the website kindly read disclaimer