Bank Nifty Trading Plan on USA Smaller Banks downgrade by Moodys

Bank Nifty Spot View: 09/08/2023

CMP: 44964.45

Moving AVG (EMA) 20 Hour & 40 Hour: 44936 & 45011

Moving AVG (EMA) 20 Day & 40 Day: 45171 & 44862

Support & Downside Range: 44773—44590--44270

Resistance & Upside Range: 45150—45320--45660

Short Term Trend Reversal Level: -- 45660

Trading View: In today's trading session ahead of tomorrow's RBI policy key support to watch is 44773 as long as bank nifty trades above this levels its breath remains sideways to bullish whereas break below 44773 breath turns sideways to bearish, on upside 45150 acts as immediate rest break and sustain above it for 1hr we may immediate open for 45320 to 45660 as next immediate upside projection.

Bank Nifty

Bank Nifty also consolidating ahead of the RBI policy outcome. On the option front, 45000 Call and Put holds significant OI indicates further consolidation at current levels however outperformance expected from PSU banking stocks.

Trade like a pro trader using our BankNifty option tips and be on the right side always and every time.

LAST DAY NIFTY UPDATE

The Indian equity market had a subdued start tracking the mixed global cues, wherein the benchmark index stayed in a slender range with some choppy moves. The index has snapped its two days of winning streak and concluded the choppy session in negative terrain, with a mere loss of 0.13 percent at 19571 level. Technically, there has been no significant change in the technical structure of the benchmark index as it keeps hovering near the 20 SMA from the past couple of trading sessions with no assertive moves. 

The broader markets kept the trader’s fraternity busy while the indices remained tentative. On the technical front, the resistance of the bearish gap around 19700 withholds the sturdy hurdle and till we do not surpass it in a decisive manner, we are likely to experience some selling pressure at higher levels. On the downside, 19500 - 19440 - 19380 are to be treated as immediate supports.

Going forward, we would advocate traders to stay fussy with stock selection and keep a close tab on the mentioned levels. Also, global and domestic data are in the pipeline for the week and one needs to stay abreast with the developments, which are most likely to dictate the near-term trend in the market.

LAST DAY BANK NIFTY UPDATE & TRADING PLAN

In contrast to the previous day, the Bank Nifty performed better compared to the benchmark index, and the two main indices appear to be out of sync. Overall looking at the charts, the price movements suggest that traders are exercising caution and avoiding aggressive positions ahead of the key RBI policy. As mentioned in our previous outlook, some tentativeness is visible at the higher end as prices are oscillating within the range of the 20 EMA and the 50 SMA. Till the time, we do not traverse 20EMA in the upward direction, the selling may re-appear anytime. Hence, it’s advisable not to create aggressive longs at higher levels. In this context, the 50 SMA support is situated around 44700, followed by a critical support level at the low from the previous week, around 44300. On the flip side, immediate hurdle includes the 20 EMA at around 45200, along with a bearish gap around 45400.Yesterday, there was notable activity in the PSU bank index, which gained 3.37%. With the important RBI policy announcement approaching, there might be specific movements in individual stocks within this sector. Traders should capitalize on such opportunities, although it's important to exercise selectivity due to the likelihood of increase in volatility. 

USD VS INR

Performance – Yesterday, the Indian Rupee weakened by 0.10 percent tracking the negative sentiments in Asian equities as investors awaited inflation readings from China and the United States to deliver an updated outlook on the health of the global economy. Today, there is a possibility that the weakness may continue in Rupee as Asia-Pacific markets were mixed after China’s inflation figures for July, with the consumer price index predicted to enter deflationary territory for the first time since February 2021. Moreover, investors patiently await the upcoming RBI Monetary Policy where a 25 bps of rate hike is expected. Outlook – USDINR is likely to trade in a range to higher manner today.