RBI will meet today on deciding the Interest rate Hike to ease of untaming inflation. From a fundamental perspective the tighter the Interest rate more it will affect the Growth cycle as Industries need to pay more Interest on loan hence affecting their profitably.
RBI has a tough task to do taming inflation and not slowing down the growth.
Looking from Technical Perceptive we can get the Best Indication from Bank Nifty.
Bank Nifty Hourly Chart
BN Hourly charts has generated sell from 11903 levels and still in SELL mode.BN was stuck in trading range of 11980-11450 which got broken yesterday.
RSI and Slow Stoch are in Oversold zone and a dead cat bounce till Hourly High EMA can be seen till 11301. BN has factored into 25 BPS hike and if RBI does not increase the Interest rate more than 25 BPS BN will rise to 11470-11530 today.
Market factors in Bad news well in advance
Bank Nifty Daily Charts
Close below previous day low of 11204 will take BN to its long term support of 10980
RSI is approaching oversold zone and STOCH is still in sell more
Buy above 11301 Tgt 11457,11530,11667
Sell Below 11204 Tgt 1118 and 10980
All the Levels mentioned are SPOT levels.