RBI Monetary Policy - Another 'Hawkish' pause likely in October - Daily Market Update- Equity 06 Oct 2023 | Globe Capital Market LTD.
RBI Monetary Policy – Another ‘Hawkish’ pause likely in October – Daily Market Update- Equity 06 Oct 2023

India's Monetary Policy Committee is likely to maintain the status quo on the RBI's key lending rate amid easing inflation and resilient economic activity even as headwinds from higher oil prices and erratic monsoons intensify. The benchmark policy repo rate currently stands at 6.50%.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on flat note.
  • European markets ended on mix note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is trading up by 10 point (as on 8:30AM), Nifty futures likely to open around 19600 levels.


News highlights from across the globe

  • Shares in Asia were broadly flat before a monthly U.S. payrolls report that will help define the path forward for Federal Reserve interest rates.
  • Australian equities edged higher, shares in Japan and Hong Kong equity futures held to tight ranges.
  • Brent Crude prices were trading below $85 a barrel, and WTI Crude was below $83-mark. The yield on the 10-year U.S. bond was trading at 4.73% and Bitcoin was above 27,000-level.


Important news updates from the domestic front

  • TCS: The IT major completed the acquisition of Kaleyra Inc. and its merger with TC Delaware Technologies, making the merged entity a direct subsidiary of TCS. Kaleyra will apply for delisting on the New York Stock Exchange.
  • Tata Motors: Retail sales for JLR grew 21% year-on-year to 1,06,561 units, while wholesales were at 96,817 units, up 29% year-on-year. JLR’s order book stands at 1.68 lakh units and states an expectation of becoming free cash flow positive with £300 million in Q2 FY24.
  • Bajaj Finance will raise an aggregate of Rs 10,000 crore through a combination of preferential issues and qualified institutional placements. The company’s board approved raising Rs 8,800 crore via QIP, along with approval to raise Rs 1,200 crore via preferential issue of warrants.
  • L&T announced the voluntary liquidation of its joint venture L&T Hydrocarbon Caspian (Azerbaijan), which has been approved by the Azerbaijani government. Consequently, L&T Hydrocarbon Caspian has ceased to be a JV.
  • Sun Pharma will acquire a 37.76% stake in Ezerx Health Tech for Rs 28.69 crore and a 4.04% stake in Agatsa Software for Rs 4.5 crore.
  • Vedanta: CRISIL updated its rating to CRISIL AA/Watch Negative/CRISIL A1+ from earlier CRISIL AA/Negative/CRISIL A1+.


Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side and settled at 19545 levels after adding 109 points to its previous closing values in an otherwise lackluster trading session.

Small cap index traded inline with benchmark, rose over 0.5% while Mid cap index underperformed the benchmark as it settled on a flat note.

Performance on the sectoral front was mix. Nifty Media was at the top of the tally, gained 1.58% followed by IT and Auto index that rose nearly 1% each. On the other hand, PSU bank index led the declines, fell 0.51%.

Going ahead, we reiterate our short term negative view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 19700 levels, on the down side, support is placed around 19200 levels.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by over 6% whereas long unwinding was seen in Banknifty and Finnifty futures with decrease in open interest by 4% and 6%.

On sectoral front, long buildup was seen in Capital Good, Media and Realty stocks whereas short buildup was seen in Pharma, Cement, and Telecom stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 19500 PE and 19600 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1864 Cr in the cash segment, bought stocks futures and index futures worth Rs 1501 Cr and Rs 524 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 521 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19670-19770; Supports 19450-19370

Banknifty – Resistances 44700-44900; Supports 44100-43800

Finnifty – Resistances 19950-20050; Supports 19650-19550




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