BANK NIFTY AFTER FOMC MEETING

Domestic equity benchmarks are likely to open higher on Thursday, tracking a positive start in Asian stock markets after minutes of the October 27-28 meeting of the US Federal Open Market Committee (FOMC) suggested that most US policy makers believed conditions for a rate hike could well be met by the time of the next FOMC meeting, but said any hike in rates would be gradual.
Yesterday, the Bank Nifty opened on a flat note and started moving higher in the initial trades. But, the up move was short lived as the banking index faced the selling pressure at higher levels. The fall got accelerated in the latter half of the session and as a result, the Bank Nifty breached lows of last two trading sessions. Eventually, the index ended the session with the deep cut of 1.92 percent over its previous close. Due to yesterday’s sharp correction, the Bank Nifty has given a ‘Trend line’ breakdown in the hourly chart. Going forward, a sustainable move below yesterday’s low (16787) may drag the index to 16580 - 16400 levels. On the flipside, the immediate resistance for the index is placed at 17028 and 17187 levels.