RBI MPC likely to maintain status quo; keep an eye on inflation and GDP forecast: Daily Market Update -7 June 2024 | Globe Capital Market LTD.
07-Jun-2024
RBI MPC likely to maintain status quo; keep an eye on inflation and GDP forecast: Daily Market Update -7 June 2024

The Reserve Bank of India's Monetary Policy Committee is all set to announce its by-monthly interest rate decision on June 7. RBI Governor Shaktikanta Das will announce the decision at 10 AM about the RBI Monetary Policy for June 2024. The RBI will keep a close watch on liquidity, growth and inflation over the next few weeks and months, but it is likely to keep the status quo with regard to interest rates.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat note.
  • European equity markets settled nearly 0.5% higher.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures likely to open around 22900 levels (as on 8:15AM).

 

News highlights from across the globe

  • Equity benchmark in the Asia-Pacific region are trading mix on Friday after a mixed session in the US ahead of this key jobs data.
  • US stocks and bonds passed their rally and ended mixed ahead of the key US jobs reading that will help shape the outlook for the Federal Reserve’s next steps.
  • Brent crude was trading 0.26% higher at $80.08 a barrel.

 

Important news updates from the domestic front

  • ICICI Bank: SEBI has issued an administrative warning to the bank regarding the outreach by bank employees to influence votes for delisting equity shares of ICICI Securities.
  • Hero MotoCorp: India’s largest two-wheeler maker picked up an additional 2.2% stake in the Bengaluru-based electric mobility startup Ather Energy for Rs 125 crore.
  • Wipro has been awarded a $500 million deal by a leading US communication service. The contract value is around Rs 4,175 crore.
  • Rail Vikas Nigam received a letter of acceptance from NTPC for a project worth Rs 495 crore.
  • Hindustan Unilever appointed Arun Neelakantan as Executive Director, effective July 1.
  • Mastek introduced the icxPro platform with NVIDIA AI. icxPro is a cloud-native platform designed for building scalable AI apps.
  • Tata Steel: NCLT approved the Scheme of Amalgamation of Bhubaneshwar Power with the company.
  • Welspun Enterprises: IOCL shall pay Rs 23.7 crore to the company towards the full and final settlement of claims relating to the Panipat Naphtha Cracker Project. The company filed a suit before the Delhi High Court against IOCL in 2018.

 

Nifty Overview & Outlook

Before the swearing-in process and the upcoming RBI monetary policy, the Indian benchmark Index Nifty experienced significant volatility. It closed the session positively, marking a 0.9% gain following weekly expiry fluctuations. On the contrary, Bank Nifty remained relatively subdued throughout the day, closing with a modest half percent increase.

The broader market indices showed significant strength compared to the benchmark index. Both the Midcap and Smallcap indices surged by over 2% each. Among sectors, the Nifty Realty index saw the highest growth, jumping by 4.7%, followed by Media with a 3.7% increase. However, Nifty Pharma and Nifty Private Banks closed on a flat to negative note.

Nifty continued its upward momentum for the second consecutive session after a sharp decline earlier in the week. However, Nifty duly respected our resistance at 22900 which is its 78.6% retracement level of the downward rally from ATH to Tuesday’s low. Going forward, we maintain the same resistance levels at 22900 and 23400, while potential support levels are identified at 22525 and 22285 in case of a bearish reversal.

 

Derivatives Overview & Outlook

Yesterday, Banknifty and Finnifty futures rose on short covering as both shed around 6.7% and 15.6% of open interest respectively, whereas long buildup was seen in Nifty and Midcap nifty futures with increase in open interest by 4.4% and 5.2% respectively.

Barring FMCG, all F&O sectors settled higher. Amongst them, Power, Pharma, Auto and Textile stocks witnessed maximum addition on long positions.

On options front, Nifty will start the new weekly contracts with maximum positions at 24000 CE and 20200 PE closely followed by 22000 PE.

 

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 6868 Cr in the cash segment, bought index futures worth Rs 1566 Cr and sold stocks futures worth Rs 4546 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3718 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23050-23200; Supports 22780-22700

Banknifty – Resistances 49800-50000; Supports 49100-48800

Finnifty – Resistances 22080-22200; Supports 21800-21700

 

F&O Securities in Ban Today – ZEEL

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