Let us analyse BankNifty on 12th Dec 2016. Bank Nifty opened gap down after a 2 day rally last week. The main reason could be the nervousness of the market regarding the Fed rate meeting to be held on 14th Dec. Also, crude oil rallied around 4% after the Non Opec members agreed for a cut in production. This event happened during the weekend. Even the IIP data released on Friday was not encouraging.
Bank Nifty found resistance near the 18600 and 18530 region and moved further downward till it found support near 18360 towards the end of the day. The selling pressure in Bank Nifty continued throughout the day.
Traders could have initiated a short at point B till 18360.
What caused the market down?
- Substantial rally in crude oil.
- Surge in US and EU bond yields.
- Expectation of a hawkish Fed.
- No consensus on GST due to disruption in Parliament for one or the other reason.
- Discouraging IIP data.
- Weak China Market.
For the day, Bank Nifty formed a bearish candle.
Bank Nifty Opening:
Bank Nifty Closing:
High of the Day:
Low of the Day:
Percent Change:
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