5 December 2016


"SELL BANKNIFTY FUTURE BELOW 18460 TG 18410/18320 SL 18520"
Market pared all losses to settle on a higher note in today’s session after two sessions of fall ahead of RBI policy meet. Polls suggesting RBI may cut the rate by 25 bps affected the sentiment. Globally, the sentiment was affected after Italian PM Matteo Renzi resigned following heavy defeat on constitutional referendum, raising political uncertainty in the euro zone. The Sensex settled at 26349, up 118 points, while the broader Nifty50 ended at 8129, up 42 points. The Benchmark indices were trading higher in the afternoon trade even as investors feared the “no” vote in Italy's referendum on Sunday could hurt the country's banking system and lead to global contagion. Hit hard by cash shortage, services sector contracted in November -- that too at sharpest rate in three years -- as new orders fell for the first time since June 2015 through subdued inflationary pressure opened up room for RBI to lower rates, a monthly survey showed today. Investors’ have turned cautious ahead of two-day meet of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) which is scheduled on Tuesday & Wednesday.

Market seems to be heading for some volatile sessions this week due to major event. However in the short term prices are expected to oscillate between Nifty 7900 on the lower side and 8300 on the higher side, with expected weakness on the higher side. Short term traders may stay on the side lines till RBI’s policy pronouncement. If rates are reduced more than market expectations a brief rally could be expected otherwise Nifty50 is expected to remain under pressure. Breach of 7,900 levels in NIFTY 50 could lead to panic selling up to 7,600 levels
More about on Google +
Supports: 7950 and 7850
Resistances: 8150 and 8300

1 comment: