After Saturday’s disappointed
performance bulls shown some strength to comeback on ground. In range bound
trading session nifty managed to close above Monday above 11700 mark up by 46
points. Nifty started the Monday session from 11627 made a low of 11614 and
high of 11749. The Sensex settled 136 points, higher at 39872. It hit an
intra-day high of 40014 and a low of 39563.After the Budget presented in
last week 1 Feb 2020, investors are now looking forward to the Reserve Bank of
India’s (RBI) February bi-monthly policy outcome. The central
bank’s monetary policy committee (MPC) will begin its three-day
meeting tomorrow, and will announce its decision on 6 Feb 2020. Most
expectations are the central bank to maintain a status quo on Thursday, even as
they remain divided on whether the central bank will continue to retain the
'accommodative' stance as regards the tone of the policy. The RBI
may maintain status quo on February 6, but sees the stance changing from
‘accommodative’ to ‘neutral’. Besides, the apex banks extend the pause to, at
least, one more MPC meeting due to prolonged inflationary pressures. The average inflation in Q4FY20 at 5.6%, and
expect the RBI to revise upwards its inflation target for the next
three quarters.
We expect market would remain volatile in the near term. The index formed a bullish candle on the daily scale and needs to hold above 11700 to extend gains towards 11750, and then 11775 -11800 zone. Overall setup and momentum is positive and a hold of recent zones could extend rally, while support exists at 11650 and then 11625 levels. It has been making higher top and higher bottom formation and supports are gradually shifting higher with medium term support at 11600.
We expect market would remain volatile in the near term. The index formed a bullish candle on the daily scale and needs to hold above 11700 to extend gains towards 11750, and then 11775 -11800 zone. Overall setup and momentum is positive and a hold of recent zones could extend rally, while support exists at 11650 and then 11625 levels. It has been making higher top and higher bottom formation and supports are gradually shifting higher with medium term support at 11600.
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Resistance: 11750, 11800
Support: 11650, 11600
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