Let us analyse BankNifty on 1st Dec 2016.After rallying for almost more than 2 percent the previous day, bank nifty felt the selling pressure at higher level. The reason being the lower GDP data. Also, the demonetization effect has not completely faded away. All throughout the session Bank Nifty formed Lower Top and Lower Bottom and ended the day just above its crucial support level of 18400. Today was clearly a day for the sellers and it was reflected through the continued selling at any rise.
Bank nifty did form a bearish candle , however until the crucial level of 18400 is not breached, there is still some chance for the bulls. Also the scheduled RBI meeting on Dec 7, 2016 for a rate cut could bring some optimism among the traders. The global cues will also be watched for any uptrend or decline.
Since the day started on a negative note with strong selling pressure, shorting the index could have benefitted the traders.
What caused the market down?
- Tepid global cues
- Weak manufacturing PMI and Q2 GDP data
- Mixed auto sales figures, mostly negative
- Increased oil price due to historic OPEC deal – not good for India as India is a net importer of crude oil.
- Stronger dollar causing INR weaker – FPI (Foreign Portfolio Investors) outflow
- Demonetization
- Announcement by Reliance to extend the free JIO service till March, 2017 – not good for other telecom companies – reliance investors may also be affected by this.
- Political deadlock due to demonetization – non passage of GST
For the day, Bank Nifty formed a bearish candle.
Bank Nifty Opening:
Bank Nifty Closing:
High of the Day:
Low of the Day:
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