Market Trend Lab

The RBI  has left repo rate unchanged at 8.5 per cent and  stated that rising fiscal deficit is adding to inflationary pressure and sudden spike in crude prices has accentuated slowdown risk. Hence, All the sectoral indices were in the red with rate sensitives like Realty, Banks and Capital Goods leading the decline.   Banknifty was down by 2.71% and all banks closed in red. Today JBNSAR @10676 has triggered sale signal and there by  given gain of 100+ points in swing trading during intraday. Tomorrow again 10634 level is important for banknifty to sustain for further upmove.

BANKNIFTY (SPOT) JBNSAR given sell signal @10676 BANKNIFTY made low of : 10583                            11.58 A.M. 10577.30                       12.00 PM     10566.00                        12.08 PM            (100 POINT GAIN BOOK 1 LOT) 10556.40                         02.36pm

The Reserve Bank of India (RBI) has left key policy rates untouched on Thursday mainly on the back of high fiscal deficit and rising crude oil prices. Banknifty (spot) trading below today's DAILY JBNSAR 10676. and WEEKLY JBNSAR IS 10634 below that expect more panic. Hourly intraday chart of  banknifty was highly overbought and expected pull back..Presenting hourly intraday chart of banknifty future with retracement level. (click on image to enlarge) HOURLY BANKNIFTY FUTURE

Being today RBI  mid quarter credit policy review  and   Union budget  tomorrow ,  expecting high volatility in market today. CNBC poll shows no rate action this time. In banknifty: 1. Target of cup and handle pattern is ACHIEVED 2. Target of triangle breakout in daily chart is also almost ACHIEVED. 3. long lower shedow candle in weekly chart will unfold direction on this week close. 4. Hourly intraday chart is highly overbought

From last week end bank nifty is giving continuously bullish signals like: 1. Long lower shedow candle (bullish signal) in weekly chart 2. Triangle break out in daily chart. 3. cup and handle pattern breakout in 10 min intraday chart Now Banknifty spot has resistance near 11100-200 zone provided it cross 10900 on closing basis During the day also indicated that bank nifty future has target of 10900-11000 after breakout from cup and handle pattern and today it has given a break out and made high of 11014.75 . (click on image to enlarge) (Banknifty Future Intraday chart)

Banknifty Spot immediate resistance is near 10880-10900 zone

Yesterday during the day  indicated that banknifty future has made cup and handle pattern and hight of the cup is 225-55 points hence expect target of 10900-11000 after breakout. Today banknifty future has given breakout from cup and handle pattern and 1st target of 10900 achieved.

Banking stocks rose for the second day after the Reserve Bank of India (RBI) announced a reduction of 75 basis points in banks' cash reserve ratio (CRR) there by easing liquidity situation in the banking system.  Today Kotak bank and  Axis bank gained highest by 1.45% and 1.27% respectively and Bank of Baroda was highest loser by 1.25% However today banknifty's volatility was low and after 12.00 pm its activity was centered near 10700 (+/- 20 points) only. Tomorrow agni level of 10727 is important to cross for further up move towards 10900-11000

Banknifty future is making cup and handle pattern in 5 min chart. (click on image to enlarge)

Today banknifty gained 1.14% by closing @10625.65 mainly due to CRR cut by RBI. Among banking share SBI  gained by 3.72% and HDFC bank was loser by 0.82%. Banknifty opened gap up as expected technically in week end post  that  Banknifty has made Long Lower shedow candle twice in weekly chart which is interpreted as a bullish signal  but it also requires follow up confirmation. Hence this week close is more important for further direction.  On downside banknifty has support near 10400 and on upside immediate resistance is 10635-55 and therafter  banknifty may move upto 10900-11000 zone 

Now banknifty has resistance near 10635-55... will show power once cross this zone