Bank Nifty Views Ahead of RBI meet

By | May 3, 2011

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

 

As seen from Daily Chart BN has broken its crucial 200 DMA @11387 and now taking support 50 SMA @11256.

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.

 

 

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