Bank Nifty (Dec): What's Next ?

 Expect Further Strength Only Above 17585-17635 Zone For 18050-18950; 
Otherwise 17065-16625 May Be Again On The Card

RBI will be on "hold" mode till Feb-Apr'16; 

But expect some PSB moves on FDI clarification by RBI

Trading Levels: BNF-DEC

BNF-Dec	LTP	17425
SL=+/-	25 POINTS	FROM SLR
			T1	T2	T3	T4	T5	SLR
Strong >	17585		17635-752	17850	18050-135*	18210-300	18485-950	<17535
Weak <	17535		17485-368	17317-250	17161-065*	16950-830	16750-625	>17585

There is no hope for any action on the part of RBI this time as the "job" was already done for the year in the previous occasion on Sep meet. 

Some may expect/think about any CRR/SLR/MSF tweaking for the liquidity factor among various PSBS; although very remote possibility. 

RBI may throw some definitive clues about 49% FDI market buzz for PSBS in order to improve their capital structure and running them as professional corporate/entity. Thus some buying may be happening in PSBS ahead of the RBI policy tomorrow.

All eyes will be on to the Q2 GDP, which will be published in the evening today and RBI stance on inflation (hawkish/dovish). Depending upon the actual implementation of 7-th Pay Comm (possible wage inflation in the system) and Fed decision on Dec-16, RBI may be quite cautious this time. 

RBI may only start to act in Feb-Apr'16 for an overall expected cut of another 0.50-0.75% in FY-17, depending upon the inflation curve and need for extra stimulus for overall economy as real rate of interest in India is still quite high wrt to WPI (which matters the industry) and corporates are still struggling with their earnings.

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