Let us analyse BankNifty on 13th Dec 2016. Bank Nifty opened negatively due to negative Asian markets and remained in the lower levels till the European markets were open in the late afternoon. Bank Nifty formed strong support near 18330.
However, the strong opening of the European market helped the Bank Nifty to rally around 18500. European markets rallied on the news of the Italian banking restructuring. Also, the Finance Minister of India hinted that there may be tax cut in the coming budget due to demonetization and curbing of black money. This also brought a sense of optimism in the Indian Market. There is also some expectation of fiscal stimulus in the forthcoming budget.
Traders could have initiated a long at point 2 near 18330 till 18450-18500 for some small gain.
What caused the market up?
- Strong European Market
- Expectation of tax cut and fiscal stimulus in the coming budget as hinted by FM
- Expectation of a lower CPI and WPI which may pave way for a rate cut in the future
For the day, Bank Nifty formed a bullish candle.
Bank Nifty Opening:
Bank Nifty Closing:
High of the Day:
Low of the Day:
Percent Change:
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