To be precise and accurate, Investors perceived RBI as non – Event. Nifty 50 Price action itself confirms the thesis. As I pointed out in my article yesterday, the focus was on Raghuram rajan’s carrier term and not monetary policy. The suspense still continues, whether he’ll be re-appointed or not – both cases can influence market sentiment.
When questioned about the second term, his reply was not straight forward..
“I am sure you will know when there is news”
Even he pointed the fingers on FM and central government over the decision-making process.
“I am, personally, intrigued by all the letters that I have written. Seriously, in all such cases a decision is reached after discussion with the government and the incumbent. I am sure you will know when there is news. I cannot do better than point you to the statement of the Finance Minister and the Prime Minister. That’s all I have to say’’
Below is the Hourly chart of Nifty 50 with price action analysis
1. There’s no strong liquidity or volatility in price action after the RBI announcement. The price jerk was mostly by order-running tendencies of floor traders. The movement caused prices to test the resistance level at 8260. It indicates that market participants ignored RBI minutes
2. From the perspective of market structure, we can observe the order of price action. Using swing analysis I have highlighted the market structure using diagram. Please see the highlight of current market structure in the price chart of Nifty 50 attested above.
3. Right now the price action is testing the temporal resistance level at 8275. Movements preceding the test can give significant clues on buying and selling pressure. Traders should see how price reacts at this resistance level to form justified trading bias. Some important key levels to notice is 8350, 8200, 8150, 8000 and 7950. Be aware of smart money players and their traps.
