Rally above 8467/8489 after Repo Rates cut by 50 BPS to 100 BPS tomorrow
Intra Day Chart Analysis & Market Outlook
(02-06-2015)
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1- Selling between 8440-8467(Immediate Resistances)
2- Last trading rate at the trading lowest of the day
3- Last 2 hours Down moves in Bullish Falling Channel
4- Whole day actual trading between 8422-8467
Conclusions from intra day chart analysis
Following lines were told at 01:16 PM on 01-06-2015 in "Mid-session Outlook(01-06-2015)":-
1- Although Nifty is trading near the higher levels the day at this moment.
2- but today intraday charts are showing selling patterns also.
3- view is cautious before RBI Credit Policy.
When Nifty was trading near the higher levels the day then we told for selling and Nifty closed near the lowest trading levels of the day today.
We told following lines also on 30-05-2015 in "Pull Back Rally continuation Possibility towards 8762.55":-
1- selling possibility can not be ruled out on the back of all around accepted RBI Rates cut on 2nd June
2- follow up consolidation is must because 5 hours mixed Patterns formations on 29-05-2015.
Selling possibility was told and it was seen between 8440-8467 today and it will be immediate resistance of Nifty. Crucial levels were updated in following Weekly Analysis topic on on 23-05-2015 in "Firstly Short Term Correction but Sideways Trading between 8201-8489 in Next Week":-
Nifty traded within above mentioned range between 8271-8467 in last 6 sessions with lower levels good supports and higher levels selling therefore technically Nifty has to trade and prepare yet for next decisive moves beyond 8201-8489.
As RBI Credit Policy tomorrow and our expectations with market reactions will be as follows:-
1- 25 BPS rate cut is confirm and discounted in present rates also therefore if it is announced then market will fall.
2- 50 BPS rate cut is possible and if it is announced then market will shoot up but before that Nifty has to consolidate between 8370-8467 and high volatility may also be seen before Credit Policy.
3- 75 BPS and above rates cut can not be ruled out because Governor Rajan is known for surprises also. If it happens the Nifty will shoot up above 8467/8489 and will consolidate at higher levels but before than Nifty has to consolidate between 8370-8467 and high volatility may also be seen before Credit Policy.
As now Indian Economy Growth ball is in the court of RBI and expected that RBI Governor will fulfill his responsibility after watching WPI,CPI,IIP and GDP figures. We are expecting rates cut by RBI between 50 BPS to 100 BPS tomorrow as well as rally above 8467/8489 because today last 2 hours Down moves were in Bullish Falling Channel also. A strict caution is that market may be highly volatile before Credit Policy therefore trade carefully.