Let us analyse BankNifty on 14th Dec 2016. Bank Nifty opened on a negative bias and continued so throughout the day trading within a small range, ahead of the Fed rate policy.
Traders maintained caution before the Fed rate hike and hence not much momentum was felt in the market. Even the low CPI data did not help much as the market is confused on how to take the data – positively or negatively. Too low inflation would indicate lack of demand on the consumption which may not be very good for the economy. However, market will closely watch the upcoming CPI data before coming to any conclusion.
During the day, Bank Nifty found resistance at 18450 and support at 18330. The market formed lower highs for most part of the session thus indicating that the selling pressure continued throughout the session.
What caused the market down?
Anticipation of Fed rate hike and the behaviour of dollar
Political disruption in the Parliament without any productivity
Market cautious on the very low CPI data (aftereffects of demonetization)
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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