Nifty 8206/Sensex 26726/Bank Nifty 17917
42 Advances/9 Declines/0 Unchanged
Banks lift Sensex 331pts, Nifty above 8200 ahead of Fed decision
Cabinet approves SBI merger with subsidiaries; stocks rally 19-20%
As we were waiting for the market to start its rally back, two news impacted the market in a positive way.
1) The Cabinet approved the merger of five associate banks with State Bank of India and ratios of the merger will be decided post valuations in two months. The bank will now start working on a merger process which will be completed by March 2017.
2) Another Government approval of its long-awaited National Aviation Policy, which contains various measures to boost the country's under-penetrated aviation sector and boost connectivity across towns.
Nifty rallied to this news in the last hours of the market from the 8080 support and rallied more than 100 points closed above the resistance of 8180. The 30-share BSE Sensex surged 330.63 points or 1.25 percent to 26726.34 and the 50-share NSE Nifty rallied 97.75 points or 1.21 percent to 8206.60 while the broader markets underperformed.
Bank Nifty added 245 in the index and closed at 17917.
Nifty is expected to remain strong, and it’s just the BREXIT meet which can impact Indian Market and as we always say that buying on dips should remain the strategy for trading and investing in Indian markets.
A good day for our subscribers as well as we booked profit in pending positions.
We booked profit in our BTST call of IGL at 628---630, it was recommended to buy around 612---608.
Also BTST was advised in IDBI, told to buy at 70 and profit booked at 71.
In options we booked part profit in Hindalco 115 CE around 4.50. It was told to Buy around 3.00--3.50.
Another part profit was booked in Adani ports 210 CE around 10. It was asked to buy around 6.00
Hope you all enjoyed in SBI too.
Now what to expect today?
Nifty closed above the resistance of 8180 at 8217. If Nifty sustains above this level then it can test its next resistance of 8280—8320. We are positive in Nifty so above 8000, target is intact to 9100---9200.
Now 8160 can act as support and below this level it can test its next support of 8120—8080 level again.
We have seen sharp upside in Bank Nifty too. Bank nifty has support at 17700 and resistance at 18000. Three consecutive closes + weekly close above 18000 will see sharp upside rally till 18700---19200+ mark in days to come.
17700---17450 act as major support.
For more updates keep following our levels and keep minting money.
Today's Top Pick
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More will update soon!!
