Let us analyse BankNifty on 5th Dec 2016. Bank Nifty made a flat opening in the morning trade, however it resisted around 18200 which formed a strong support for most part of the day. Italy voted ‘NO’ for the constitutional amendments in the referendum. Hence its PM, Renzi offered his resignation which was not a very good news for EU. However, the Austria Presidential election was won by the pro-EU candidate and it brought some optimism in the Euro zone countries. Also the Nov Service PMI for India was very weak.
In the afternoon all the Euro zone country indices rallied which caused the Indian indices to rally too. The Austria win by the pro EU candidate counterbalanced the Italian referendum and rather brought much optimism on the integrity of EU after the Brexit and Italian shock. Bank Nifty made a high of 18,440 which was also its day high. There was also optimism regarding the rate cut by the RBI on the 7th Dec which could have helped in the rally.
What caused the market up?
- Optimism regarding the integrity of EU after the win of a pro EU candidate. (many analyst believe that Italy referendum was the Internal matter of the country )
- Optimism regarding rate cut by RBI
- Optimism on further quantitative easing or bond purchasing program by the ECB (European Central Bank) that could be announced in the meeting held on 8th Dec.
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:
Leave a Reply