Government Approves Capital Infusion
India’s benchmark Nifty has rallied 183 points in the last two trading sessions as the Government approved Rs 48,239 crore capital infusion into 12 public sector banks. The index has formed a bullish candle today and has registered a high of 10833 approx. This recapitalization measure is likely to help the ailing PSU’s maintain regulatory capital requirements and finance growth plans for the future. The big question is, how far will this surprise rally last?
Key Takeaway’s For Tomorrow
In today’s session Nifty witnessed a bull run after it opened around 10750 approx. The government’s decision to infuse cash into the PSU’s pushed the Index to a high of 10833 approx. Strong buying was witnessed in call options around 10772 approx. The 10800 and 10900 strike call options generated 62% and 76% returns intraday. Going forward, Nifty is likely to find support around tomorrow’s range low. The nearest upside target for the index is around 10842 approx. However, if the index trades below, tomorrow’s range low, it is likely to scale down to 10711 approx.
Observations In The Hourly Timeframe
In the hourly session, Spot Nifty has closed around 10790 approx. The index is likely to find support around tomorrow’s hourly range low. The nearest upside target for the index is around 10820 approx. On the other hand, if Nifty trades below, tomorrow’s hourly range low, it might scale down to 10750 approx.
Bank Nifty Options Data