Last week the benchmark Indices started with a positive note but could not sustain more than a day and started falling ahead of RBI Policy meeting. Nifty and Sensex both have declined more than 1.5 percent and Bank nifty lost almost 1 percent during the week.
RBI has unchanged the Repo rate as discussed on our last weekly report and reduced the Statutory Liquidity Ratio (SLR) by 25bps which means now Banks can keep less security deposit at RBI for providing credit to the clients.RBI has also cut the Inflation projection for the second half of 2.7 to 3.2 percent from 3.9 to 4.5 percent earlier.
The OPEC (Organisation of Petroleum Exporting Countries) meeting at Vienna has finally announced the decision of cutting over production crude oil, after Iran, Russia is expected to join soon in the production cut. This has boosted the crude price on Friday.
Last Friday, due to the strong global cues Indian market saw a rally, next week exit polls and election outcome will set the mood of Sensex, Nifty and Banknifty. As per exit polls, Congress is likely to come in Rajasthan and there will be a tough fight in MP and Chhattisgarh. As per the market experts, next week 3/4 days market will be highly volatile and if BJP loses all 3 states Nifty may correct 500 points and touch 10200. We have to wait till Tuesday for the result.
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Nifty and Bank Nifty Technical levels for the week
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| Stock Market: Election outcome will set the mood of Nifty |
Nifty Weekly Outlook
Primary Trend: Corrective - Sideways OHLC-(10961.15/10974.00/10611.70/10735.15)
Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 10860 whereas all down moves initiate Short Covering (Buy) @ 10625
If Nifty moves above 10790 then you should Buy with 1st Target of 10930 during the day or any point during the week by Trailing the Stop Loss from 10600-10700-10760-10850-10940-10975 FOR the Target of 10997-11066-11152
If Nifty moves below 10702 then you should Sell with 1st Target of 10565 during the day or at any point during the week by Trailing the Stop Loss from 10875-10775-10725-10650-10565-10500 FOR the Target of 10495-10427-10345
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| Stock Market: Election outcome will set the mood of Bank Nifty |
Bank Nifty Weekly Outlook
Primary Trend: Up - Sideways OHLC-(27055.50/27065.20/26234.10/26660.00)
Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 26985, whereas all down moves initiate Short Covering (Buy) @ 26470
If Bank Nifty moves above 26825 then you should Buy with 1st Target of 27142 during the day or any point during the week by Trailing the Stop Loss from 26450-26650-26775-26975-26170-27275 FOR the Target of 27300-27460-27655
If Bank Nifty moves below 26600 then you should Sell with 1st Target of 26312 during the day o at any point during the week by Trailing the Stop Loss from 26995-26795-26675-26475-26275-26175 FOR the Target of 26160-25995-25795
As per the technical charts, Nifty and Bank Nifty are showing corrective to sideways market. The exit polls result will make the market highly volatile on Monday and the outcome of the election will set the market mood from Tuesday onward. Traders and short-term investors should be cautious for at least coming 3 days in the market.
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As per the technical charts, Nifty and Bank Nifty are showing corrective to sideways market. The exit polls result will make the market highly volatile on Monday and the outcome of the election will set the market mood from Tuesday onward. 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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