No Fed Rate Hike
India’s benchmark Nifty witnessed a fresh bull run today as the US Federal Reserve pumped up sentiments by stating that it could be “several meetings” before it thinks to raise interest rates. The latest indicators suggest that the Fed is likely on hold till summer, if not longer. Nifty has closed with a bullish bias in today at 11085 approx. The index might scale up to 11122 approx tomorrow, if t sustains above tomorrow’s range low. Please note that, tomorrows range low will act as a trend deciding pivot for Nifty.
Tomorrow’s Low Can Trigger Short Term Selling
Nifty scaled yet another milestone today and registered a high of 11095 approx. The bullish move comes on the backdrop of a dovish Fed stance after the Chinese government rolled out stimulus measures in the form of tax cuts yesterday. Presently, Nifty is firmly in the grips of the bulls and is likely to scale up to 11122 tomorrow if it sustains above tomorrow’s range low. On the other hand, if Nifty slips below tomorrow’s range low, it might witness a fall of 170 points to 10927 approx. Traders must take note, that tomorrows range low will play a major role in forming the trend as it is a crucial pivot point that can trigger a spike in implied volatility.
Observations In The Hourly Timeframe
In the hourly session, Spot Nifty has closed around 11053 approx. The index is likely to find support around tomorrow’s hourly range low. The nearest upside target for Nifty is around 11100 approx. On the other hand, if Nifty trades below tomorrow’s hourly range low, it might scale down to 10885 approx.
Bank Nifty Options Data