MTECHTIPS

MTECHTIPS:-Bank Nifty:
The Bank nifty witnessed a volatile trading session and managed to
close with strong gains as the RBI cut the Repo & Reverse Repo
rates.  For banks, the key announcements included the abolition of
foreclosure charges/pre-payment penalties on floating-rate home
loans and a reduction in the ceiling for exposure in ‘gold-loan’
NBFCs The index in coming sessions will continue to take support
around 10400 levels and if it breaks below these levels of 10200 will
be major support. Any dip below the levels of 10200 will negate the
positive trend in the index. The index has  crucial resistance above
10750 levels, and if the Bank nifty holds above these levels, we may
test levels of 11000 and above also. A positive RBI policy has set the
tone for the banking stocks, but the focus now shifts on earnings and
government reform measures. The  outlook is positive if the index
holds strongly above 10400 levels and traders can hold on to the
longs with a target of 10850-11000 in sight.