Let us analyse BankNifty on 9th Dec 2016. Bank Nifty opened near 18600, however it was dragged down till it found strong support around 18450. After that, it continued to form higher top and higher bottom throughout the day. It found resistance at around 18740 towards the end of the day. Today was clearly a day for the bulls.
The rally was mainly fuelled by the ECB decision to extend its bond purchasing program till Dec, 2017(9 months further) for 60 bln/mnth. Although market expected it to be 80 bln/mnth for 6 months, still the extension was taken positively by the markets after rumours regarding ECB tapering few days back. Overall, it was well above market expectation and hence taken positively.
Domestically the statement by FM for an incremental government capex added further fuel to the rally.
What caused the market up?
- Positive global cues
- ECB actually extended its bond purchasing program till Dec, 2017
- FM hinted on increased govt. capex in the forthcoming budget.
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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