In yesterday’s trading session, Nifty showed strength in the early afternoon thereby extending profits. Moreover, a new high again beat the record which got driven by FMCG and IT stocks. Whereas, selling pressure took place in selected banking and auto stocks there limiting the upside rally.
Looking into the daily chart, Nifty formed a Doji pattern and ended near the beginning mark. The indecisive perception took place because of the pattern of formation. Generally, in the Doji pattern, the market may choose any path of direction either up or down. All hopes lay down on the RBI policy which may decide the trend of the market. But for now, the market is neutral. Be watchful during your trades
If we look into yesterday’s trading session then Nifty50 begins with 16288.95 which later on thrash the day’s low of 16210.30 in between volatility but later in the day come by with some strength. Moreover, made a high of 16349.45 which later on ended the day with 16294.60.
Indices failed to perform again thereby turning the advance-decline ratio negative. Furthermore, the Nifty midcap 100 index grew by 0.01 percent whereas smallcap 100 index makes a dip of 0.57 percent.
Moving further, Bank Nifty begins on a positive note at 36,093.95. However, a tiny fickleness is seen but within a scale. The movement was seen in the banking sector but lots of profit booking pulled the index down by 193.25 points. Consequently, the day ended and Bank Nifty stood at 35,834.80.
India VIX dips by 2.55 percent and stood at 12.87 levels.
Nifty Future
Nifty future has support at 16140 and resistance at 16350—16420.
Below 16288… Sell it with a stop loss above 16350 for the downside target of 16244—16188—16140.
Above 16350… Target looks 16390—16420.
Today is RBI policy. So we will trade cautiously for the day.
Bank Nifty
Bank Nifty has support at 35850 and resistance at 36300.
Below 35850, it could test 35450—35050 levels.
Fresh buying we will do on a close above 36300 levels only.
Today is the last trading day of the week. We will get clear direction after RBI policy and weekly settlement.