Tomorrow morning there is a big event RBI Interest Rate Decision which will put impact on Share market, Nifty will be in Focus. The RBI plays a crucial role in shaping Indiaโs economy.
One of its key tool is Monetary policy, which include decision related to interest rate. This decision have an impact on economy, including the stock market.
Current Scenario
- The RBIโs Monetary Policy Committee (MPC) meets to deliberate interest rates and analyze the economy.
- Auto stocksโ performance, rupee-dollar trends, and crude oil prices are closely monitored.
- US Federal Reserve Chairman Jerome Powellโs speech and US economic data (such as ISM manufacturing PMI and non-farm payrolls) impact global markets.
The currentย Reserve Bank of India (RBI) repo rateย stands atย 6.50%.ย This rate was increased byย 25 basis pointsย onย February 8, 2023, marking theย 6th consecutive hike.
As investors, itโs essential to keep an eye on the RBIโs monetary policy decisions, as they can significantly influence investor sentiment and stock prices
Nifty Analysis
Nifty closing at all time high forming a bullish hammer on daily timeframe.
Market Prediction:ย Market is waiting for the RBI policy to announce. From here Market can go in three direction 1. It will take a pause and go for breakout 2. It will go for breakout after policy announce 3. Market can take a reversal from the resistance Zone. So please wait for the price action for the confirmation before taking new trade.
- Support and Resistance Levels:ย Support levels are placed at 22400, 22300, and 22100.ย 22300ย having strong support level. Resistance levels are at 22600, 22700.ย 22600 may act as strong resistanceย level till next week as per option chain and open interest analysis.
- PCRย is atย 0.93ย indicate moderate bullish. Not much change compared to yesterday.
- FII & DII dataย showing Neutral to Bullish.
BankNifty Analysis
Banknifty break the trendline and form a Bullish dragonfly Doji candle on daily chart.
Significance:
- Reversal Signal: The Bullish Dragonfly Doji suggests a potentialย bullish reversalย in the market. It occurs after a pause or trend reversal.
- Buyers Take Control: The long lower wick indicates that buyers have taken control, pushing the price back up.
Trading Strategy:
- Long Trades: Traders may enter long trades during or shortly after the confirmation candle completes.
- Stop Loss Placement: For a bullish reversal, a stop loss can be placed below the low of the Dragonfly Doji.
- Support and Resistance Levels:ย Support levels are placed at 47500, 480000.ย 48000ย having strong support level. Resistance levels are at 48200, 48500.ย 48500 may act as strong resistanceย level till next week as per option chain and open interest analysis.
- PCRย is atย 1.04 indicate bullish momentum.
Last week Trading Strategy
Trading strategy that discussed on start of this weekย Bull Put strategyย giving profit of 2363/- on one lot now. I will update more if any adjustment is required.
Financial Disclaimer:ย This article is for informational purposes only and should not be construed as financial advice. Please consult a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any losses incurred as a result of using the information provided herein.
