Indian Stock Market: Nifty and Bank Nifty Trend ahead of RBI Monetary Policy

Indian Stock Market was a highly volatile last week as if the hangover of the general election is not yet over. Sensex and Nifty gained 0.72% and 0.68% on a weekly basis. Bank Nifty also gained 0.53% at the end of the week. On a monthly basis, both the indices Sensex and Nifty remained volatile and gained 1.6% and 1.49% respectively.

Indian Stock Market and NDA government

The benchmark indices were highly volatile on the last day of the week on occasion of the distribution of portfolio in NDA Government. Most market experts have given a positive outlook on the appointment of Smt Nirmala Sitharaman first lady Finance Minister. She will present her first Budget on 5th July.


The first day of the new government starts with negative news on the economic front, the GDP growth plunges to five year low of 5.8% in January-Mach quarter. There are tough challenges ahead for the NDA Government in coming times on the economic front.

Market experts are anticipating some big reforms in the first 100 days of the new government. As per the market expert, big reforms will include changes in labor laws, privatization moves, creation of land banks for new industrial development, Banking and financial services and infrastructure.


Indian Stock Market Last Week

FIIs are the net seller in the month of May series whereas the first day of the June series FII’s bought Rs 676 cr and DIIs bought net Rs 394 Cr. On the sectoral front  Auto, PSU Banking, Metal, Consumer, Media were on negative whereas IT, Consumer non-durables, Pvt Banking, Oil and Gas were on positive in the last week.


On a weekly basis, TCS, Gail, IOCL, Infosys, and Yes Bank were the top gainers in Nifty50 stocks. The losing stocks in Nifty 50 were JSW Steel, Tata Motors, Heromotorcop, Zee Ent, and Bajaj Auto in the last week.



Next week the Indian Stock Market

Next week the Indian stock market will have only four trading days, the market will be closed on 5th Wednesday on occasion of Eid-ul-Fitr. Nikkei PMI Manufacturing numbers will come on Monday, 3rd June and PMI Service numbers are scheduled on 5th June. RBI Monetary policy is scheduled on 6th June, Thursday. The GDP data came on the last day of the week after the market hours, so the market will react to it on Monday.  


Nifty and Bank Nifty Future Next Week


Nifty Future Weekly Outlook - OHLC-(11858.90/12047.00/11828.65/11916.50)
Nifty Chart 3rd June
Nifty Chart 3rd June-7th June


Primary Trend: Volatile (Bias Corrective) – Expected Volatility of 22.5096% (Range of 372 Points)
Range Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 11990 whereas All Down Moves Initiates Short Covering (Buy) @ 11850


If Nifty future Moves Above 11950 then you should Buy with 1st Target of 12030 during the day or any point during the week by Trailing the Stop Loss from 11850- 11900- 11930- 11975- 12025- 12060 FOR the Target of 12075- 12115- 12165
If Nifty future Moves Below 11890 then you should Sell with 1st Target of 11810 during the day or any point during the week by Trailing the Stop Loss from 12000- 11950- 11925- 11875- 11810- 11775 FOR the Target of 11770- 11730- 11675


Bank Nifty Weekly Outlook - OHLC-(31229.95/31815.45/30562.10/31324.75)
Bank Nifty Chart 3rd June
Bank Nifty Chart 3rd June-7th June




Primary Trend: Volatile (Bias Corrective) - Expected Volatility of 25.9758% (Range of 1127 Points)
Range Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 31715, whereas All Down Moves Initiates Short  Covering (Buy) @ 30940


If Bank Nifty future Moves Above 31475 then you should Buy with 1st Target of 31955 during the day or any point during the week by Trailing the Stop Loss from 30950- 31225- 31415- 31700- 32000- 32175 FOR the Target of 32190- 32430- 32725


If Bank Nifty future Moves Below 31175 then you should Sell with 1st Target of 30700 during the day or any point during the week by Trailing the Stop Loss from 31725- 31425- 31250-  30950- 30650- 30475 FOR the Target of 30460- 30225- 29925


Conclusion:

Nifty and Bank Nifty chart is showing a corrective trend but as the RBI Monetary Policy is on 6th and any positive step can reverse the direction in the market. Indian Stock Market would remain volatile in the next week also due to RBI Monetary policy. Traders are advised to remain cautious this week also and can follow above technical levels.


You may also like to read, RBI Monetary Policy: CRR | SLR | Repo Rate



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Happy Investing!


Finogyan Team


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Indian Stock Market: Nifty and Bank Nifty Trend ahead of RBI Monetary Policy Indian Stock Market: Nifty and Bank Nifty Trend ahead of RBI Monetary Policy Reviewed by Finogyan on June 02, 2019 Rating: 5

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Nifty and Bank Nifty Support and Resistance for Tomorrow

Bank Nifty Support and Resistance

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