Today we have all important credit policy day, decision on Rate cut will be taken and whether we have CRR cut or not will be clear by 11:45 AM. RBI was in action yesterday where it took qualitative measures to arrest the rise of rupee.
Basically they have tried to remove the speculative element out of market and effects were immediate Rupee dipped to 53.64 from the high of 54.16.
on RBI day Nifty tends to be quiet volatile and it can be used by intraday player to make few quick points in Nifty.
I have attached 2 Charts of Nifty on previous to RBI meet in June and Sep.
If you observe the chart closely you can see Nifty tends to move up before the RBI announcement and quickly give up the gains after the announcement,so in 30 mins Nifty will show a move of about 50 points which can be cashed into.
The above charts can be visualized and used into trading http://niftyrtcharts.blogspot.com/
- If we get a Rate cut on CRR markets will rally
- If we get no rate cut market will be disappointed and can go with current trend which is down
What does charts Indicates
Buy above 4795 Tgt 4824,4840 and 4882
Sell below 4728 Tgt 4690.4671 and 4640