NIFTYBANK - MPC's "Sanjeevini"

As we celebrate, Lord Hanuman Jayanthi, the market too would be needing Sanjeevini from MPC. With increasing unemployment, less dependent global economic canvass, continued down-ward movement of the economic growth rates (despite being one of the best), the concerns would be how to hold the number above 6 while bringing inflation below 6% on sustained manner. While the theoretical inflation path post the series of rate hikes remain down, the services inflation is not going any way soon. For the policy and political managers, the internal stability that is the real inflation is much more of a concern. That pushes either a hike and dove tone, or a pause and hawkish tone. Also, one has to always remember, it is not the news, but how the markets react to the news is more important. Lat year, Nifty Bank had euphoric move 7% from the last week of March. That means we have room for 3% more. Nifty shows another 1% more before the corrective move. There is zone of resistance around 41200-41500. Being expiry and weekend, markets would be wary of stretching this. However, the tone for next week is likely set today. The private sector looking more stronger than the PSU, particularly led by the HDFC twins. For the day 41600-41300 to work. Any excess would be to the upside, ideally.