RBI Governor Urjit Patel resigns: Impact on Stock Market

RBI Governor Urjit Patel's resignation can be a big blow to the Indian Stock Market tomorrow. Patel has resigned as RBI governor on Monday exactly 9 months ahead of his terms citing as a personal reason. His resignation has come just a day ahead of 5 states election result which people are eagerly waiting for.

We all know the recent relationship of Urjit Patel with the government, Urjit Patel actually wanted RBI to act as an autonomous body not much interference from the government. Whereas the government wanted RBI to support recent liquidity crises and help NBFC and SME sectors in a liberalized way.

As expected, today Indian Stock Market opened gap down and closed at almost 2 percent down due to weak global cues and uncertainty on state assembly election result. The rupee was under pressure against the dollar and also fresh tension between the US and China Trade war dragged the Indian Market.

RBI Governor Urjit Patel resigns: Impact on Stock Market

Traders and investors are already nervous due to election result and negative global cues for tomorrow, Urjit Patel's resignation will definitely be another big blow for the stock market. It would be very difficult for traders if all domestic, as well as global factors, turns negative for the market tomorrow.

Nifty and Bank Nifty Outlook:

Nifty Outlook

If Nifty moves above 10550 then you should Buy with 1^st Target of 10680 during the day or any point during the week by Trailing the Stop Loss from 10600-10700-10760 FOR the Target of 10680-10730-10810

If Nifty moves below 10345 then you should Sell with 1^st Target of 10232 during the day or at any point during the week by Trailing the Stop Loss from 10440-10380-10345-10270 FOR the Target of 10280-10232-10180

Bank Nifty Outlook

If Bank Nifty moves above 26335 then you should Buy with 1^st Target of 26650 during the day or any point during the week by Trailing the Stop Loss from 26450-26650-26775 FOR the Target of 26650-26950-27300

If Bank Nifty moves below 25930 then you should Sell with 1^st Target of 25550 during the day or at any point during the week by Trailing the Stop Loss from 26275-26175-25795 FOR the Target of 25795-25550-25260

Conclusion:

As per the technical charts, Nifty and Bank Nifty are showing heavy weakness. SGX Nifty is showing 190 points down. Short-term investors and traders should remain extra cautious tomorrow. Traders should check the global market in the morning and should track the election result also. Investors are advised not to make any fresh position before election result. If BJP wins at least 2 out of 3 states (MP, Rajasthan & Chattisgarh) then one can think of making the long position at a lower level otherwise not. Traders and short-term investors should be cautious for at least coming 3 days in the market.

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Finogyan Team

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