Last Trading session exactly as predicted by me, Indian Stock Market opened gap negative for the day. The market would see some profit booking and exactly same happened. Nifty opened gap negative and saw further profit booking as predicted. Nifty saw lows right near support levels of 9215 like a dot. RBI disclosed no change in CRR but increase Reverse Repo Rate by 25 basis point. Reverse Repo rate refers to the interest rates banks get for deposits with RBI. Hence market recovered from day lows. Finally, Indian Stock Market recovered from day lows but closed marginally negative for the day.
This week Indian Stock Market would open gap negative. Technically, Indian Stock Market is still in positive zone and would enter into negative zone once it closes below 9186 levels for Nifty. Market would see correction as the US fired dozens of missiles at targets in Syria and market is cautious ahead of US President Donald Trump and Chinese President XI Jinping meet. Market is in consolidated range between 9186 and 9275 levels for Nifty. Market would see sharp movement once Nifty closes out of this range. Until then traders can go long near support and short near resistance levels. Indian Stock Market would see reversal only if market closes below 9186 levels for Nifty and 21381 levels for BankNifty. BankNifty would see levels of 21850-22000, if it managed to close above 21700 levels. Some profit booking can’t be ruled out at this point of time but breaching levels of 9275 for Nifty would force it to move towards 9350 levels. Overall, Traders can go long above 9275 levels and short below 9186 levels on closing basis.