What a comeback!
As mentioned in my last issue of the Daily Game Plan, the markets were looking oversold near important support levels and a short term bounce was expected and they did!
Nifty smartly bounced back to close at 11095.25 or 1.87%. Nifty Bank also followed the suit and bounced back up to 21490 or 1.99%.
The star performers were Reliance & HDFC Bank among heavyweights. Reliance was also oversold as per my Swing Trading System and bounced by almost 8% during the day and closed at 2150. HDFC Bank rose by almost 4% after RBI approved the appointment of Shashidhar Jagdishan as a replacement to Aditya Puri who retires this October.
So what’s next for the markets?
Well, the Nifty has closed just a tad below the downsloping trendline from all-time highs.
Will it breakout above the trendline as well as make a new high? I believe Yes, and the catalyst would be the RBI’s decision on policy rates expected on Thursday.
So long as we’re above the 200 DMA and rising trendline at around 10850, I expect the bullish party to continue!
There are no signals for the day.
Do check out the performance of my strategies.
Have profitable day!