How to trade Nifty and Bank Nifty futures ahead of RBI policy meeting outcome

 

Nifty & Bank Nifty Futures Trading Strategy Ahead of RBI policy meeting Outcome: Indian benchmark indices extended their winning streak for another trading session. The Indian market started with an optimistic note on Thursday morning while following the global peers. In the last hour, markets erased some intraday gains and closed in the green zone. Traders booked some profits ahead of the RBI policy.

The market sentiments got optimistic after the ministry of statistics and program implementation Pronob Sen said that requirement of the stimulus package to revive the economy for three years. The Traders also took note of Principal Economic Adviser Sanjeev Sanyal’s statement that the government recognizes the need for further stimulus at an appropriate time to perk up demand in the economy hit by COVID-19. 

However, some volatility in the market was seen in the second half after the news that the World Bank has estimates that India’s GDP to contract 9.6% in 2020-21. Earlier the World bank had forecasted a 3.2% contraction in June. The World Bank has forecasted that the growth will return to 5.4% in FY22 provided the COVID related all restrictions are lifted by 2022.

On the global front,  except for Hang Seng, all other major Asian markets closed in the positive zone. The overnight optimism about the US fiscal stimulus measures helped the Asian markets to trade higher today.  The European and the US futures indices Dow and Nasdaq futures are also trading higher today.

 

The market today, Sensex, Nifty, and Bank Nifty on the spot levels

 

At the close, Nifty gained 95.75 points or 0.82% and at 11834.60 while Sensex closed higher by 303.72 points or 0.77% and at 40,182.67 levels. The Bank Nifty on the spot levels gained 226.55 points or 0.99% and closed at 23191.35 levels.

The Nifty midcap 100 closed marginally higher whereas the smallcap index closed in the red today. The midcap index gained 17.95 points or 0.10% and at 17146.35 levels. The smallcap index closed lower by13.65 points or 0.23% and at 5890.25 levels.

The top five gainers in the Nifty index for the day are Wipro, Cipla, TCS, Ultratech Cement, and HCL tech. The top five losers in the Nifty index for the day are GAIL, ONGC, ITC, Eicher Motors, and Coal India. TCS, Wipro, and Infosys were the most active stocks in the NSE today.

On a sectoral front, IT & Software, Banking & Finance, Healthcare, Telecom, and  Construction Materials sectors are the top gainers. On the losing side, Oil & Gas, Metals, Infrastructure, Consumer Durables, and Insurance sectors are closed in the red today.

 

Nifty and Bank Nifty futures price movement today

 

Te Nifty futures share price opened at 11823.20 and it made a gap up opening of 72.30 points today. It has touched an intraday high at 11914.50 and a day’s low at 11795

The Nifty futures share price has given a movement of 119.50 points. In the end, it gained 76.10 points or 0.65% and closed flat at 11827 levels.

The Bank Nifty futures share price opened at 23179.95 It was made a gap up opening of 161.10 points today. It has touched an intraday high at 23480 and a day’s low at 23060

During the day, the Bank Nifty futures share price has given a movement of 420 points. In the end, it gained by 150.8 points or 0.66% and closed at 23169.65 levels.

 

Trading Strategy for Nifty and Bank Nifty futures on RBI policy meeting day, 9th Oct ( Oct Expiry)

 

 

Nifty futures trading strategy for 9th Oct 2020

Primary Nifty Trend in futures: Positive 

Range-Bound Trend of Nifty Futures: All up Moves Initiates Profit Booking (Sale) @ 11950 whereas All Down Moves Initiates Short Covering (Buy) @ 11800

If the Nifty futures share price Moves Above 11870 and sustain. Then you should Buy with 1st Target of 11896 during the day with a Stop Loss of 11806. FOR the Target of 11896- 11930- 11964

If the Nifty futures share price  Moves Below 11806 and sustain. Then you should Sell with 1st Target of 11780 during the day with a Stop Loss of 11870. FOR the Target of 11780- 11752 -11725

 

 

Bank Nifty futures trading strategy, 9th Oct  2020

Primary Trend of  Bank Nifty Futures: Positive

Range-Bound Trend of Bank Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 23650, whereas All Down Moves Initiates Short  Covering (Buy) @ 23100

If Bank Nifty futures share price Moves Above 23330 and sustain. Then you should Buy with 1st Target of 23420 during the day with a Stop Loss of  23070. FOR the Target of 23420 – 23535- 23656

If the Bank Nifty futures share price Moves Below 23070 and sustained. Then you should Sell with 1st Target of 22980 during the day with a Stop Loss of 23330. FOR the Target of 22980 – 22910- 22820

 

Conclusions:

Indian market closed in the green even after the last hour of profit booking. The markets gained with the help of the global market cues. Tomorrow the Indian market will react to the RBI policy meeting outcome. It is expected that the RBI will maintain the status quo on rates. The commentary of the RBI policy meeting regarding inflation, moratorium, and economic growth would be important to watch out for tomorrow.

Traders can follow our Daily Morning market views and can follow our Nifty and Bank Nifty futures trading strategy for tomorrow 9th Oct.2020

 

Also read, Algo Trading Definition: Pros and Cons of Algorithmic trading

                Best stocks to buy today in India- Stock Recommendations

 

If you like the post please share with your friends and others

 

Happy Investing!

Editor’s Desk

 

Disclaimer-

Nifty50Stocks.com has taken due care and caution to compile the data for its Website. The views and investment tips expressed by investment experts on Nifty50Stocks.com are their own and not that of the website or its management. Nifty50Stocks.com is not SEBI registered Advisors and advises its users to check with certified and SEBI registered experts before taking any investment decision. However, Nifty50Stocks.com does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the results obtained from the use of such information. Nifty50Stocks.com especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.