Nifty is not giving any clear indications or clear levels for trading tomorrrow. On the other hand Banknifty trading looks clearer and that is despite the fact that tomorrow is credit policy announcement. Now according to a widely held belief RBI is likely to keep rates unchanged. In that event then people will look towards commentary for any signal. And it is important since Corona is posing new challenge now. FIIs sold today also in cash segment but bought marginally in index and stock futures. DIIs did buy in equity cash but not much, so the fear of fall is real.
On charts, Banknifty has given almost same low as yesterday and very low high. The major components ( HDFC Bank, ICICI bank, Axis and SBI) closed in negative; only Kotak bank closed in positive.
The likely scenario therefore is this- Market might open very near to today's close and after credit policy, because of dovish commentary from RBI, Banknifty is likely to climb up. That is when we short at given selling area ( 32,775 to 32,830) with SL above 32880. In another case if Banknifty breaches yesterday's low of 32,330, then also it will rise to some extent ( dead cat bounce) and stop somewhere- short there.
On charts, Banknifty has given almost same low as yesterday and very low high. The major components ( HDFC Bank, ICICI bank, Axis and SBI) closed in negative; only Kotak bank closed in positive.
The likely scenario therefore is this- Market might open very near to today's close and after credit policy, because of dovish commentary from RBI, Banknifty is likely to climb up. That is when we short at given selling area ( 32,775 to 32,830) with SL above 32880. In another case if Banknifty breaches yesterday's low of 32,330, then also it will rise to some extent ( dead cat bounce) and stop somewhere- short there.