Nifty 50 – Bank Nifty Chart – 17th December – 21st December 2018
Weekly video on NSE Nifty 50 & Bank Nifty. In this week’s video on Nifty & Bank Nifty, I have covered how Traders and Investors should keep track of RBI Governor Shaktikanta Das in mending ties between RBI and Government of India while maintaining Independent decision making of RBI. In the short term, lot will depend on how RBI Governor communicates his policy vision while balancing what Government of India wants. Both Nifty and Bank Nifty will take cues from this without doubt.
Recent rally in market has been on back of markets expectation of improving ties between RBI and Government including key decisions on Liquidity measures and transfer of surplus capital to Government. Both Nifty and Banknifty saw sharp reversals this week and closing for both was good.
I then move to Market Profile chart for Nifty50 and Bank Nifty and I show the importance of elongated profile in both these NSE Indices. Nifty trend and Bank Nifty trend is not clear yet at this stage as there are still some contrary indications when it comes to Price structure. Nifty chart and Bank Nifty chart reflect that price is whipsawing around the 200 day moving average and traders will have to wait till trend is resolved. Within a wide range, price action structure is still of higher high but lower low. In the end, I have also taken up State Election data and shown why it makes no sense to extrapolate this to Lok sabha election in 2019.
In the end, I have mentioned my Nifty trading strategy and Bank Nifty trading strategy for the next few months. I have identified Nifty support and resistance range (10650 – 10700) and above this range I will be long and below this range I will be short.