7th Dec ’23 - tomorrow's RBI meet- more liquidity drain ???

NSE:BANKNIFTY   Nifty Bank Index
BankNifty Analysis
The opening candle was very similar to the Nifty’s. The low set in the opening minutes ended up as the low of the day. In a way, it shows the bulls are still in control. The pattern was quite similar to yesterday. Weak open and then range-bound trade.

4mts chart link - click here
Banks will be on their toes tomorrow huffing and puffing to the RBI Governor’s announcement. I feel he will bring in some measures to cut down the liquidity. The 2 last attempts by varying the iCRR and CAR did not go that well. Bank stocks reacted pretty badly but recovered and hit new highs.

Paytm fell 20% today when it said it might cut back on small value loans ~ Rs50000. I guess this impact came from the hike in CAR weightage from the last meeting.

63mts chart link - click here
I guess there is no clue from the chart here, will have to spend the time in front of the TV tomorrow to hear from the RBI governor directly. Since I am already neutral on BankNifty, my level to go short for tomorrow will be 46341.


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