Banknifty Share Price Analysis Post Fed Rate hike

Powell has raised interest rate by 0.25% and now a pause is expected in June followed by two rate cuts in current year.

Bank Nifty Spot View For: 04/05/2023
Cmp: 43312.70
Support & Downside Range: 43090—43000—42908—42728--42484
Resistance & Upside Range: 43487—42585—42700--44000

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Short Term Trend Reversal Level: --
Trading View: In today's weekly trading session key support level to watch is 43090—43000 spot zone after opening if this 90 points zone support manage to hold then we may immediate see upside to resume and bank nifty and try to trade most of the time between 43200 to 43400 zone whereas if 43000 gets break then down move and cooling off move can extend till 42908 to 42728 minimum, now fresh upside starts once we break 43487 spot zone.

US Fed Chairman Speech Postmortem

US Federal Reserve Chairman, Jeremy Powell, took decision to raise the interest rate by 25 basis points. Powell provided answers to four main questions about whether the Fed will pause or stop interest rate hikes, the banking crisis, the possibility of a recession, and the consequences of Congress not raising the debt ceiling. He emphasized the need to balance interest rate hikes to control inflation without affecting economic growth. 

The US economy is projected to grow below its potential and to bring inflation back under 2%. The global market closed significantly negative for the second consecutive day, and the Indian market looks to have a 30 to 50 point gap down opening. 

Major Indian companies, including HDFC, Hero Motor Corp, and Tata Power, are set to release earnings results. 

Technical analysis shows a potential for minor weakness before witnessing an upside bounce from higher lows.