The RBI Monetary Policy Committee is widely expected to keep the repo rates unchanged - Daily Market Update - Equity 8 Dec 2023 | Globe Capital Market LTD.
The RBI Monetary Policy Committee is widely expected to keep the repo rates unchanged – Daily Market Update – Equity 8 Dec 2023

The Reserve Bank of India’s Monetary Policy Committee is widely expected to keep the repo rate unchanged at its review meeting but is likely to adopt a cautious stance regarding rising threats of food inflation and excess liquidity in the system. While the market participants are keenly awaiting the RBI’s revised inflation and GDP forecasts, they are also keeping a close watch on any additional measures by the central bank to suck out the excess liquidity. The MPC has kept the repo rate unchanged at 6.5 percent in the past four monetary policy reviews, after raising the rate by 250 basis points since May 2022

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.17% to 1.37%.
  • European equity markets settled on a flat to negative note.
  • Asian equity markets are trading mix
  • GIFT Nifty is little changed, Nifty futures likely to open around 21075 levels (as on 8:30AM)


News highlights from across the globe

  • Markets in the Asia-Pacific region were trading lower ignoring the overnight rally in Wall Street as traders increased bets that the Bank Of Japan is nearing the end of its negative interest rates.
  • Shares in Japan fell for a second consecutive day. Japan’s GDP contracted 2.9% on year.
  • Brent crude was trading 0.34% lower at $74.05 a barrel


Important news updates from the domestic front

  • Rate sensitive stocks: The RBI will announce the decision on key interest rates at its Monetary Policy Committee meeting on Friday. Banking, finance, auto, housing and real estate stocks will be in focus.
  • IIFL Securities: The Securities Appellate Tribunal has set aside SEBI’s order prohibiting the company from onboarding new clients for two years and reduced the monetary penalty from Rs 1 crore to Rs 20 lakh.
  • Zomato: Softbank’s SVK Growth plans to sell a 1.1% stake in the food delivery company at Rs 120.5 apiece, Bloomberg reported.
  • Bharat Forge: The company’s unit, Kalyani Strategic Systems, proposed to acquire a majority stake in Zorya Mashproekt India. ZMI is engaged in the development of indigenous capabilities for build-ups, repairs, and overhauls of all types of gas turbine engines.
  • Container Corp signed an MoU with NTPC Vidyut Vyapar Nigam to develop solar projects at its terminals.
  • DB Realty: Unit Vanita Infrastructure’s subsidiary acquired equity shares of DB Conglomerate Realty. Post-acquisition, DB Conglomerate Realty has become a step-down subsidiary of the company.
  • Shriram Finance signed an agreement with SIDBI for co-lending to MSMEs.


Nifty Overview & Outlook

The benchmark Nifty index ended on a flat to negative note at 20901 levels after a highly volatile trading session.

The broader markets outperformed the benchmark as Mid cap & Small cap index rose 0.65% and 0.37% respectively against flat closing of the frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Consumer Durables was at the top of the tally, gained over 1% followed by Healthcare, Oil & Gas, Media and Pharma indices that rose over 0.5% each. On the other hand, FMCG and Metal index led the declines, fell 0.90% and 0.75% respectively.

Nifty index is well placed on multiple chart frame; however, possibility of some profit-taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading strategy till index is holding above 20500 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, on price front no significant changes was seen in all three major index whereas on open interest front long build up was seen in Banknifty futures with 1.7% increase in open interest and Nifty futures open interest increased by 6.6% while no change was seen in Finnifty futures open interest.

On the sectoral front, long buildup was seen among Infrastructure, Power, Textile, Oil & Gas and Pharma stocks whereas short buildup was seen among FMCG and Metals shares.

On options front, Nifty will start the new weekly contract with maximum positions at 21000 CE and 20000 PE and closely followed by 20900 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1564 Cr in the cash segment, sold stocks futures worth Rs 2331 Cr and bought index futures worth Rs. 598 Cr. DIIs were also the net sellers in the cash segment to the tune of Rs 10 Cr only.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21160-21225; Supports 20785-20610

Banknifty – Resistances 47550-47900; Supports 46000-45450

Finnifty – Resistances 21245-21430; Supports 20700-20410




Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.