RBI may keeps Repo rates unchanged, and also defers implementing FX derivatives trading rules to May 3 : Daily Market Update - 5 April 2024 | Globe Capital Market LTD.
RBI may keeps Repo rates unchanged, and also defers implementing FX derivatives trading rules to May 3 : Daily Market Update – 5 April 2024

The Reserve Bank of India (RBI) governor Shaktikanta Das will announce the Monetary Policy Committee's (MPC) decision on key interest rates today. This marks the first RBI MPC announcement in the Financial Year 2024-25 (FY25). The central bank has kept the repo rate unchanged for the last six consecutive MPC meetings. The repo rate currently is at 6.5 per cent. The Reserve Bank of India has deferred the implementation of currency derivative regulations by a month to May 3. This is in view of the feedback received from the market and the recent developments, the central bank said in a release. RBI had tightened rules on currency derivatives to curb speculative trading.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended lower in range 1% to 1.5%
  • Barring CAC, other European equity markets settled on a flat to positive note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is trading down by 100 points, Nifty futures is likely to open around 22550 levels (as on 8:30AM).


News highlights from across the globe

  • Indices in Asia-Pacific region were trading lower in early trade on Friday, tracking overnight losses on Wall Street amid rate cut uncertainty, and sharp rise in crude oil prices.
  • On Wall Street, stocks gave up early gains to end lower as investors shift their focus to the release of U.S. non-farm payroll data, later today.


Important news updates from the domestic front

  • Bajaj Finance reported AUM at Rs 3.3 lakh crore, up 34% YoY, in the fourth quarter, while deposits stood at Rs 60,100 crore, up 35%.
  • UltraTech Cement has completed a 100 MW solar energy project under the Group captive scheme in Rajasthan. The company now has a capacity of 612 MW of renewable power and 278 MW of WHRS.
  • Nestle India: The National Consumer Dispute Redressal Commission dismissed a complaint filed by the Dept of Consumer Affairs on MAGGI Noodles in 2015.
  • Hero MotoCorp received income tax demand of Rs 310 crore and interest of Rs 296 crore for the AY 2013-14 to 2017-18 and 2019-20.
  • Prestige Estates acquired 21 acres of prime land in Whitefield, Bengaluru for residential development spanning approximately 4 million sq ft of developable area, comprising around 1,800 apartments.
  • Sobha reported sales value at Rs 6,644 crore, up 28% YoY for the end of FY 24, and average realisation at Rs 10,922 per sq ft, up 19% YoY. The total sales value stood at Rs 1,504 crore at the end of the fourth quarter and the average price realisation stood at Rs 1,123 crore.
  • IndusInd Bank reported net advances at Rs 3.4 lakh crore, up 18% YoY for the end of the fourth quarter and deposits stood at Rs 3.81 lakh crore, up 14% YoY.
  • Bandhan Bank reported total deposits at Rs 1.35 lakh crore, up 25% YoY, for the quarter ending March, and total advances at Rs 1.3 lakh crore, up 18%.
  • Nazara Technologies’s unit bought Ultimate Teen Patti’s intellectual property rights for Rs 10 crore.


Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side and settled above 22500 levels after adding 80 points to its previous closing values after highly volatile trading session.

Mid cap index underperformed the benchmark as it ended on a flat to negative note while Small cap index performed in line with the benchmark, up nearly 0.5%.

Performance on the sectoral front was mix. Amongst them Nifty Bank, IT and Pvt Bank indices gained  1% each followed by Nifty Auto and Financial Services index that were up 0.45% and 0.83% respectively. On the other hand, PSU bank and Oil & Gas index were at the bottom of the tally, down 1.37% and 0.70% respectively.

Technically, Nifty index is well placed on multiple time frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 22000 levels on closing basis. Crossover and sustenance above 22550 spot will be a positive development that might take it towards 22800 and higher levels.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures rose on short covering as all three major indices shed around 2%, 12% and 16% of open interest respectively.

On the sectoral front, long buildup was seen among Banking and IT stocks whereas short buildup was seen among FMCG and Oil & Gas stocks.

On options front, Nifty will start the new weekly contracts with maximum positions at 23000 CE and 22500 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1136 Cr in the cash segment, sold stocks futures and index futures worth Rs 6587 Cr and 754 Cr respectively. DIIs were also the net sellers in the cash segment to the tune of Rs 893 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22590-22650; Supports 22270-22200

Banknifty – Resistances 48500-48800; Supports 47500-47000

Finnifty – Resistances 21400-21500; Supports 21020-20950


F&O Securities in Ban Today  – HINDCOPPER, SAIL, ZEEL


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