The RBI cut benchmark rates by 25 basis points (bps) on 4 October, bringing down the repo rate from 6.5% to 6.25% since then there is a significant underperformance in banknifty futures as compared with nifty futures. And this underperformance in banknifty futures is expected to continue in the upcoming trading sessions as every minor rallies in banknifty gets rejected at higher level and sellers stepping
Nifty and Bank Nifty sentiment turned negative on the EOD charts on the event of BRExit poll announcement. And the global markets also strongly reacted for the BRExit poll outcome. USDINR Spot closed around 67.8264 and GBPINR lost almost 5%. Reality, Capital Good and Metals are the Top Sector losers with looses mounting to more than 3% each.
Nifty and Bank Nifty August Futures Daily Sentiment turned positive on friday. India’s July WPI inflation figures came at -4.05% YoY Vs June WPI was -2.40%. Despite the Chinese Yuan Devaluation and weaker USDINR sentiment market rallied from the lows on positive IIP figures ( grew 3.8%) and possible rate cut sentiment due to negative inflation growth.
It is interesting to note that DII’s are relentlessly buying the equity market right from 12th June 2015 despite Greece Exit fears, Global Meltdown and Indian Market seems to be resilient to such macro events. Monday panic gap down in Nifty Index countered by late session rally on both monday and tuesday.
Nifty futures tested a low of 8001.1 on tuesday follow by a recovery very next day. The hourly timeframe in both nifty futures and bank nifty futures turned to buy mode in the second half of the yesterdays trading session. Currently the support zone comes around 8018 and 17436 respectively. Trend could reverse if the support zone breaks on the hourly charts on closing basis.
Government spending policies that influence macroeconomic conditions. Through fiscal policy, regulators attempt to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy. Fiscal policy is largely based on the ideas of British economist John Maynard Keynes (1883–1946), who believed governments could change economic performance by adjusting tax rates and government spending.
If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My clients frequently question me-“Hey do you use any indicator”? Most probably my reply will be no-because majority of you guys know, I am a pure Price action trader!
Nifty and Bank Nifty hourly charts maintains the downtrend with resistance zone coming around 8366.9 and 19010.9 Trend will reverse to upwards direction if the resistance zone breaks on the hourly charts (on hourly basis). It should be noted that last Friday Dowjones ends with a -170 points after two big continuous positive streaks.