Nifty Before RBI Credit Policy

Indian Stock Market would open gap negative. There was a huge volatility in global market in last two trading sessions. Indian Stock Market may see volatility today but would wait for RBI Credit Policy on Tuesday, September 29, 2015. 

Expect 25bps rate cut by RBI on Tuesday and it is already discounted in the market. If it happens, we may see a very small positive movement and then again market would consolidated. 

Yes, if fortunately RBI cuts 50 bps then we would see sharp jump in the market and Nifty may cross levels of 8000 in that case. No Rate Cut would definitely force Nifty to see sharp breakdown. 

Nifty is currently in negative zone but Bank Nifty is still strong for now and yet in positive zone. Low risk trade is to go long in BankNifty and hedge it with shorts in Nifty and BankNifty 18000 call options. 

Bank Nifty would enter into negative zone once it breaches levels of 16975 by closing and if it happened, we would see new 52 week lows in Nifty. 

FIIs were net sellers of Rs.115.10 crores whereas DIIs were net buyers of Rs.50.67 crores in last trading session. 

Nifty would see strong support at 7800-7785-7736-7678 whereas strong resistance would be seen at 7930-8000-8021-8055 levels.

CNX Nifty ended the week on negative note losing around 1.5%.
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As told last week that the support for the index lies around the levels of 7750 to 7800. If the index breaks below the levels of 7750 on closing basis then the index can drift to the levels of 7500. During the week the index manages to hit a low of 7723 and bounce to close the week around the levels of 7868.

It seems the index is moving in the range of 7700 to 7750 on downside to 8000 to 8050 on upside.
If the index manages to close above the levels of 8050, then the index can move to the levels of 8250 to 8300 where 100 & 200 Daily SMA are positioned.

If the index manages to close below the levels of 7700, then the index can drift to the levels of 7550 to 7600 where 500 Daily SMA and 100 Weekly SMA are positioned.

Next week on 29/09/2015, RBI is announcing the credit policy. So we expect the markets to be highly volatile and the policy will decide the further direction of the markets.

Broad range for the week is seen from 7700 on downside to 8100 on upside.

Bank Nifty ended the week on negative note losing around 1.2%.
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As told last week that the support for the index lies around the levels of 7750 to 7800. If the index breaks below the levels of 7750 on closing basis then the index can drift to the levels of 7500. During the week the index manages to hit a low of 7723 and bounce to close the week around the levels of 7868.

It seems the index is moving in the range of 7700 to 7750 on downside to 8000 to 8050 on upside.
If the index manages to close above the levels of 8050, then the index can move to the levels of 8250 to 8300 where 100 & 200 Daily SMA are positioned.

If the index manages to close below the levels of 7700, then the index can drift to the levels of 7550 to 7600 where 500 Daily SMA and 100 Weekly SMA are positioned.

Next week on 29/09/2015, RBI is announcing the credit policy. So we expect the markets to be highly volatile and the policy will decide the further direction of the markets.

Broad range for the week is seen from 7700 on downside to 8100 on upside.

NSE Nifty: (7869) The support for the Nifty is 7800-7785-7736-7678 and the resistance to the up move is at 7930-8000-8021-8055 levels.

NSE BankNifty: (17197) The support for BankNifty is at 17060-16875-16780-16680 and the resistance to the up move is at 17354-17570-17660 levels.

BSE Sensex: (25864) The support for the Sensex is at 25670-25530-25395-25287 and the resistance to the up move is at 25950-26040-26340 levels.