28 November 2016


Bouncing back towards the fag-end of the session in an otherwise choppy trade, BSE Sensex on Monday closed nearly 34 points higher at 26350 with gains in different sectors. However, banking shares led by state-run State Bank of India (SBI) were under pressure after the Reserve Bank on Saturday introduced an incremental cash reserve ratio (CRR) of 100% for the fortnight to absorb the surge in liquidity in banking system following demonetization of high value notes. Besides, sentiment took a hit amid investors taking a cautious approach in view of persistent capital outflows from emerging markets including India by foreign funds after Donald Trump won the United States (US) election combined with weakness in the rupee. Market was also influenced after the Reserve Bank on Saturday asked banks to maintain a temporary incremental cash reserve ratio (CRR) of 100% to absorb excess liquidity from the system after the government’s move to withdraw high-value currency notes fuelled a surge in deposits, triggering sell-off in banking stocks. The BSE Sensex ended with a gain of 34 points at 26350. The benchmark indices opened at 26304 touched an intra-day high of 26414 and low of 26183. The NSE Nifty closed 13 points higher at 8127 points. It opened at 8081 points, hitting a high of 8147 and low of 8067.
Technically, a strong break below 7950 will increase the downside pressure and drag it to 7900/7850. Traders can go short on a break below 7900.On the other hand, a decisive break above 8170 will ease the downside pressure and take the index futures higher to 8200 and 8250 thereafter.  Thus the trend in the short term and medium term timeframe remains bearish whereas the trend in the long term timeframe still continues to remain Bullish.
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Supports: 7950 and 7900

Resistances: 8170 and 8250

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