NIFTYBANK - The new Rise!

3 Apr 2023

Unlike the Nifty where we have observed false break's within the channel both up and down. Nifty bank has perfectly respected the area. On the downward channel if you have observed any false break, watch one are indicated by arrow suggesting that the respect was referring to another area of support. Ditto recent low drawn from the channel, supported by the previous horizontal resistance line. What happens here, impacts on NIFTY. That sense, the space here is to be watched, that squarely is not on bank's but on barrels. A break of brent above 90 dents confidence, not on bank's profitability but on the inflation outlook more so the domestic one. While the record GST collections are positive, they are also suggestive of how much money is taken away from the system, thus less spending. The rich continue to spend, while the middle continues to struggle. To our success, we have reasonably managed well. Not allowing the rates to shoot, prudence returning to the exchange policy and the recent increased in savings rate though PPF largely untouched. Clearly the signs of sticky rates, sticky inflation, thus the sticky growth to be the base case for any asset forward moves. For now, 40200-41200 is the new range. While we are in the middle, the expected ranges 40350-40850 ideally to take care in an otherwise truncated week.