Markets Today: Nifty Bank falls by over 400 points as Market Guru Anil Singhvi predicted ahead of RBI MPC announcements

Nifty Bank fell by over 400 points on Friday after the Reserve Bank of India announced its bi-monthly policy in June. This was exactly in line with Zee Business Managing Editor Anil Singhvi, who was very sure that the index will fell by 300-500 points ahead of the RBI’s policy decision.

Nifty Bank on Friday had opened at day’s high level above 35650, however, has declined by over one per cent at 35256.40, at around 02:30 pm during Friday’s trade. Except for IndusInd Bank, all other stocks are in the red, RBL Bank, ICICI Bank, and Bandhan Bank declined most on the Index.

Singhvi had predicted, Nifty Bank may fluctuate between 300-500 points on the back of RBI policy decision, and 35100-35400 is the most important support level for the index, wherein a buying opportunity would emerge. He added, unlike Bank Nifty, the benchmark Nifty50 will not be much impacted.

For the straight sixth time, the Monetary Policy Committee (MPC) headed by Reserve Bank of India Governor Shaktikanta Das leave the benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance as the economy faces the heat of the second Covid-19 wave.

The central bank had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.

The markets, which opened at lifetime high levels today, witnessed a decline, hours after the RBI policy decision. In this regard, BSE Sensex fell by over 200 points or 0.40 per cent at 52024.40, while Nifty is trading below 15700-mark at 15655.55, down 34.80 points or 0.22 per cent on Friday.

Singhvi had also said, the markets are strong unlikely to see a correction, as global markets are good, FIIs and DIIs are sustained. And, only an external factor could bring a healthy correction, he added.

While setting support of 35300 for positional traders on a closing basis, the market guru said, If Nifty Bank closes below 34900 then its correct opportunity to make an entry for new investors.