8th Dec ’23 - RBI’s meet clears the air for banknifty & finnifty

BankNifty Analysis

Banks had a totally different chart pattern than Nifty50 today. I would say the pattern by BankNifty was more mature and stable compared with Nifty. At no point in time, a breakdown was visible in BN today - yes, we dropped 0.67% ~ 316pts in between, but it was not as scary as N50.

4mts chart link - click here
RBI Governor maintained status-quo today, A few of the important points from his meeting today -

1. Repo rate at 6.5% - unchanged
   
2. Withdrawal of accommodation stance - unchanged
   
3. CPI inflation fell by 2% after the last MPC meet
   
4. Real GDP for 2023-24 projected at 7%
   
5. Connected lending framework - work in progress
   
6. UPI limit enhanced
   
7. Set up a Fintech Repository
   

Remember how the banks were shy on 6th and 7th of December? The air is now clear for them - there are no hidden surprises from RBI this time. This could be one of the reasons we had an intraday bounce of 449pts ~ 0.96% after 1pm today.

63mts chart link - click here
For the last 2 days, I was neutral on Banknifty - after the clarity shown today, I wish to change my stance back to bullish. The new ATH is now 47303.65. Would like to see some action by banks in the next week.