NIFTYBANK - TRANSITORY OR VARIABLE

Nifty Bank, pounces on the back of broad moves and aided by MPC no show. Actually the REPO and Reverse REPO both are not Variable that itself makes the rates up. However, the question is how variable they are is the question and that would have to be gleaned in the next couple of days. Finally it boils to what the bond yields of more the REPO term do matters. Despite all this the data from US which spooked the market late US trade and now Asia trade would drive the markets here too. If you observe from the chart, the supply zone (re-drawn) is very close. Hence, 39400 is hard to crack and we ideally expect the move to bring back to the lower trend line support that is now around 38000. Depends upon the open the stops 38900-39150 last 39400. One move intra-day to 38500 is in order.